With auto company Stellantis last week applying to form an industrial loan company in Utah, the number of pending ILC applications now stands at three.
Details:
Stellantis submitted its application for Stellantis Bank USA on Feb. 11.
General Motors recently resubmitted an application for GM Financial Bank in Salt Lake City, which it said will focus on auto lending and deposits.
Ford submitted an application for Ford Credit Bank, also in Utah, in 2022.
ICBA View: ICBA has consistently opposed attempts by commercial companies to obtain ILC charters, noting they would violate the separation of banking and commerce and create a systemically risky financial institution.
Closing the Loophole: ICBA details the evolution of the ILC charter in a comprehensive white paper. ICBA will continue to advocate for legislation that requires companies that acquire an ILC to be subject to the same consolidated supervision by the Federal Reserve as any other bank holding company.
More: ICBA’s Mickey Marshall told The Banker (subscription required) that traditional lenders are worried about the implications of larger tech firms such as Amazon or Meta effectively entering the banking space through the back door and getting access to spending habits data.
