Resources
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Restricting Industrial Loan Charters Would be Bad for the Economy
A food-truck operator, a hometown car dealership, and a woman-owned neighborhood bakery seeking to grow their business and achieve their American dream choose an industrial bank as their financial partner.
Setting the Record Straight
Industrial banks have been part of the US financial system for more than 100 years. These fully FDIC regulated banks meet the same safety and soundness standards and complement, rather than compete, with other banks.
The Financial Lifelines That Power America
Industrial banks have capital ratios nearly 50% higher than the rest of the banking industry. Profitability, asset quality, and loss performance all exceed national norms. Industrial banks are meeting real needs for real Americans.
A Cornerstone of the U.S. Banking System
For more than 40 years, DIDMCA has been an integral part of the U.S. banking system, allowing state chartered banks to lend nationwide under a single, uniform federal framework, just as national banks do.
Reports & Studies
The Kem C. Gardner Policy Institute finds that Utah benefits from a high concentration of commercial banks, industrial banks, and other financial institutions that engage in Community Reinvestment Act (CRA) activities throughout the state.
A new report from the Utah Center for Financial Services at the David Eccles School of Business at the University of Utah finds that industrial banks (IB) occupy a distinctive niche in the U.S. banking system.
This study aims to help policymakers better understand the dynamics of the modern credit markets and the safeguards that could allow legitimate, capable businesses to deploy capital into the banking industry.
The Utah Center for Financial Services at the University of Utah prepared this report to highlight the safety and soundness of Industrial Banks. Key measures of safety and soundness in banking are capital, asset quality and profitability.
The Utah Center for Financial Services at the University of Utah prepared this report to highlight the safety and soundness of industrial banks. Key measures of safety and soundness in banking are capital, asset quality, and profitability.
The Utah Center for Financial Services at the University of Utah prepared this report to highlight the safety and soundness of Industrial Banks. Key measures of safety and soundness in banking are capital, asset quality, and profitability. We have compared levels of capital, asset quality and profitability ratios for the US banking industry and the industrial banking sectors.
The Stena Center for Financial Technology prepared this report to highlight the safety and soundness of industrial banks. Key measures of safety and soundness in banking are capital, asset quality and profitability. The underlying financial information is drawn from the call report data for individual banks and for aggregated banking industry segments from 2021- Q2 of 2024.
The Utah Center for Financial Services at the University of Utah prepared this report to highlight the safety and soundness of industrial banks. Key measures of safety and soundness in banking are capital, asset quality and profitability.
The banking industry, in general, enjoyed strong profitability and solid financial condition in 2023 and 2022. The industrial bank sector continues to achieve strong capital and asset quality and superior profitability ratios.
The Utah Center for Financial Services at the University of Utah prepared this report to highlight the safety and soundness of industrial banks. Key measures of safety and soundness in banking are capital, asset quality, and profitability.
Comment Letters
The National Association of Industrial Bankers applauds the Senate Banking Committee for advancing the nomination of Travis Hill as Chairman of the Federal Deposit Insurance Corporation and urges swift confirmation by the full Senate.
A letter to FDIC Acting Chairman Travis Hill reaffirming that industrial banks are among the nation’s best-performing, best-capitalized, and safest financial institutions—operating under robust FDIC oversight that is as strong or stronger than that applied to bank holding companies.
The National Association of Industrial Bankers, the Utah Bankers Association, and the Nevada Bankers Association appreciate the FDIC’s ongoing support in improving the transparency, timing, and consistency of the current application process. We also appreciate the FDIC's desire to address the historic decline in de novo bank formations.
Letter from Senators Cortez Masto, Curtis, Ricketts, and King commending the Federal Deposit Insurance Corporation’s (FDIC) request for information on the agency’s approach to evaluating industrial loan company (ILC) charter applications and their support for the ILC charter and the laws Congress designed that permit the existence of ILCs.
The National Association of Industrial Bankers welcomes the 119th Congress and looks forward to working with members toward our shared goal of a strong and safe banking sector.
The National Association of Industrial Bankers (NAIB), the Utah Bankers Association (UBA), and the Nevada Bankers Association (NBA) appreciate the opportunity to submit the following comments on the proposed rule RIN 3064-AF88, Parent Companies of Industrial Banks and Industrial Loan Companies, which amends 12 CFR Part 354 (the Proposed Rule). We urge the FDIC to withdraw the Proposed Rule. The Proposed Rule ignores the financial record of industrial banks, which has been superior to other insured depository institutions in every measure for the last 40 years.
We write today to reiterate our support for the industrial loan company (ILC) charter and respectfully remind you to ensure the Federal Deposit Insurance Corporation continues to follow the laws that Congress carefully designed for the FDIC to consider new deposit insurance applicants, including ILCs.
The National Association of Industrial Bankers (NAIB) appreciates the opportunity to submit comments on proposed amendments to § 1026.52(b) and its accompanying commentary as they relate to credit card late fees.
We appreciate the Committee’s desire to protect consumers from risks in the financial sector. However, the legislation introduced in the Close the Shadow Banking Loophole Act unfairly targets Industrial Loan Companies (ILCs), which are among the safest and soundest banks in the U.S. financial system. The proposed legislation is anti-innovation, anti-competition, and runs counter to its stated objectives.
The undersigned also work with a variety of depository institutions in their CRA obligations. This includes a strong working relationship with the National Association of Industrial Bankers, which represents industrial banks chartered in Utah and Nevada. Industrial banks have been an enthusiastic and helpful partner in many of our CRA projects and endeavors.
Important Issues
Thirteen of the 24 industrial banks met the threshold (assets in excess of one billion dollars) and accordingly reported estimated amounts of uninsured deposits.
The Utah Center for Financial Services at the David Eccles School of Business at the University of Utah commissioned the Source of Strength and Consolidated Supervision: A Comparative Assessment of Industrial Banks and Commercial Banks.
Bank Holding Company regulated by Federal Reserve (BHC) compared to parent of an industrial bank regulated by the bank’s state and federal regulators (IBHC).
The Utah Center for Financial Services has released the report “Bank Funding Sources: A New Look at Brokered Deposits” (“The Barth Report”) by Dr. James Barth and his colleague, Yanfei Sun. In it they examine brokered deposits in the context of their origin, regulatory history, use, and performance.
The Volcker Rule was intended to regulate certain trading and investment activities of banks, bank holding companies and their affiliates, such as broker-dealers. It restricts so-called proprietary trading – the purchase and sale of financial instruments for purposes of short-term profits – and sponsoring and investing in hedge funds and private equity funds.
James R. Barth and Yanfei Sun of Auburn University conducted a study for the Utah Center for Financial Services (UCFS) on how Industrial Loan Companies (ILCs a.k.a Industrial Banks) have performed compared to other FDIC insured institutions. The findings demonstrate ILCs perform better than all other FDIC institutions.
James R. Barth and Yanfei Sun of Auburn University conducted a study for the Center of Innovation in Banking & Financial Services (CIBFS) on how Industrial Loan Companies (ILCs a.k.a Industrial Banks) have performed compared to other FDIC insured institutions. The findings demonstrate ILCs perform better than all other FDIC institutions.
The NAIB is urging the FDIC review the exclusion of all fully-insured brokered deposits from the definition of the term “core deposit” used in the Uniform Bank Performance Report (“UBPR”).
