FTA Responds to FDIC RFI on Industrial Banks and Industrial Loan Companies
The Financial Technology Association (FTA) submitted a response to the Federal Deposit Insurance Corporation’s (FDIC) Request for Information (RFI) on industrial banks and industrial loan companies and their parent companies. FTA emphasized that industrial bank charters are an important opportunity to increase de novo bank formation, advance competition, and promote financial services innovation.
In the letter, FTA highlighted three key points:
Industrial bank approvals will fuel new bank creation, competition, and innovation.
Industrial banks align with a safe and sound banking system and should not face punitive requirements.
The FDIC should treat fintech ownership of industrial banks as a favorable factor in applications.
FTA also urged the FDIC to provide clear guidance to applicants and noted that industrial banks have a proven record of resilience, even during periods of financial stress.
Congress created the industrial bank charter as a legitimate and well-regulated option in a diverse chartering landscape. FTA believes this framework should be preserved and strengthened to promote competition, innovation, and consumer benefits.
The Financial Technology Association (FTA) is a network of fintech leaders shaping the future of finance. We champion the power of technology-driven financial services to catalyze innovation and advocate for modernized policies and regulations that reflect the digital transformation.
FTA Responds to FDIC RFI on Industrial Banks and Industrial Loan Companies
The Financial Technology Association (FTA) submitted a response to the Federal Deposit Insurance Corporation’s (FDIC) Request for Information (RFI) on industrial banks and industrial loan companies and their parent companies. FTA emphasized that industrial bank charters are an important opportunity to increase de novo bank formation, advance competition, and promote financial services innovation.
In the letter, FTA highlighted three key points:
FTA also urged the FDIC to provide clear guidance to applicants and noted that industrial banks have a proven record of resilience, even during periods of financial stress.
Congress created the industrial bank charter as a legitimate and well-regulated option in a diverse chartering landscape. FTA believes this framework should be preserved and strengthened to promote competition, innovation, and consumer benefits.
Read the comment letter here.
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The Financial Technology Association (FTA) is a network of fintech leaders shaping the future of finance. We champion the power of technology-driven financial services to catalyze innovation and advocate for modernized policies and regulations that reflect the digital transformation.