Federal Legislation
Industrial banking legislation under consideration in the 119th U.S. Congress
Industrial Banks Are Real Banks
Real companies with real customers, real earnings, and real capital own them.
Industrial banks are fully regulated by the FDIC and their chartering states, with the same rigorous standards for capital, liquidity, and governance. Industrial banks must demonstrate financial strength and transparency and be subject to FDIC oversight that is as strong—and often stronger—than that of bank holding companies. Unlike bank holding companies, industrial bank parent companies must be a source of financial strength for their banks; otherwise, they don’t qualify to have a bank.
Congress has deliberately preserved the industrial bank structure because diversification makes the system stronger. By expanding access to credit and fostering innovation in lending and payments, industrial banks make the system more competitive, inclusive, and resilient. That’s how competition works – and that was the intent of Congress.
Legislation Under Consideration
American Lending Fairness Act of 2026
Congress is considering legislation – the American Lending Fairness Act of 2026 – sponsored in the Senate by Sen. Bernie Moreno (OH) and in the House by Representatives Warren Davidson (OH) and Andy Barr (KY). This law would put an end to novel interpretations of DIDMCA’s opt-out provision and reaffirm Congress’s original intent: preserving interstate banking while protecting consumers, competition, and the dual banking system.
Close the Shadow Banking Loophole Act
We urge Congress to reject this unnecessary legislation that would only hurt consumers and undermine competition in the banking sector. Industrial banks are one of America's most reliable engines of jobs, consumer and small-business loans, payments, and community support. They are banks like any other, fully regulated, with the same rigorous standards for capital, liquidity, and governance.