Licenses and charters

Big banks join fight against new ILCs


Small banks have long led the campaign against industrial loan companies, arguing they can be used to violate the separation of banking and commerce. But now the industry’s heavyweights are also taking a hard line in response to an FDIC proposal that would give tech companies a smoother path into the lending business.


New York state expands feedback program for fintech startups


The Department of Financial Services is going live with DFS FastForward, which aims to help innovators in finance, healthcare and insurance consult directly with regulators on specific compliance issues.


‘Banks are the infrastructure’: OCC leader on pandemic, recovery, CRA


Acting Comptroller of the Currency Brian Brooks says financial institutions are needed more than ever to “sustain existing businesses” and help entrepreneurs rebuild. Meanwhile, reforming the Community Reinvestment Act, he says, can “unblock opportunities” in minority neighborhoods.


Even with FDIC endorsement, fintechs' path to becoming banks is bumpy


Recent steps that would help nonbank lenders enter the traditional banking system, like a proposal clarifying the industrial loan company charter, are needed but face strong opposition.


State regulators question timing, legality of OCC licensing proposal


The Conference of State Bank Supervisors says parts of the plan are an overreach, while the agency should think twice about developing the proposal during the coronavirus pandemic.


Rakuten withdraws ILC application, plans to refile


The company's plan had drawn strong criticism from bankers about Rakuten's potentially controlling an industrial loan company while engaging in its non-financial businesses.


ILC freeze breaks with federal approvals for Square, Nelnet


In signing off on deposit insurance for the payments giant and student loan servicer, the FDIC sanctioned the first new industrial loan companies in over a decade.


FDIC nears decision on ILC bids as it floats new standards for charter


On the same day the Federal Deposit Insurance Corp. said it will soon rule on two applications, the agency also proposed benchmarks for all firms that want to own industrial loan companies.


FDIC to issue proposal on ILCs at agency board meeting


A decision by regulators on how to move forward with the controversial charter could have broad implications for fintech firms that want to enter the banking system.


OCC proposes eliminating 'outdated' licensing rules


As part of a review, the agency said it had identified requirements dealing with operating subsidiaries, non-controlling investments by banks and other corporate activities that were no longer necessary.