The FDIC proposed new standards for companies seeking an ILC charter including parent companies agreeing to examinations, specialized capital and liquidity requirements and more; “The outcome of the vote on these applications should not be interpreted as an endorsement, or a criticism, of the industrial bank charter, but rather the fulfillment of a statutory responsibility to consider such applications,” FDIC Chair Jelena McWilliams said to American banker; the new standards will help to provide companies like Square and Rakuten some clarity on a pathway forward; “This proposal would ensure that parent companies serve as a source of strength for their industrial bank subsidiaries,” said McWilliams. “By codifying these requirements, the proposal would enhance transparency and provide important protections for the Deposit Insurance Fund.” American Banker
