ICBA and other groups urged Congress to impose a three-year moratorium on industrial loan company licensing applications. In a joint letter, ICBA, the Bank Policy Institute, and the Center for Responsible Lending said the moratorium would provide Congress time to pass pending legislation to permanently close the ILC loophole.
Noting that the ILC loophole allows parent companies to avoid consolidated oversight while violating the separation of banking and commerce, the groups said the growth of Big Tech introduces new concerns over consumer data, including sensitive personal financial information.
“In the era of dominant Big Tech, we should be cautious before giving technology companies even greater reach into the economic life of Americans by allowing them to own banks," the groups wrote.
ICBA President and CEO Rebeca Romero Rainey wrote in a recent op-ed on Medium that companies are increasingly seeking to exploit the ILC loophole while the nation grapples with COVID-19. Community bankers can use ICBA's Be Heard grassroots action center to urge their senators to co-sponsor ICBA-advocated legislation to close the ILC loophole.
