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.

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.

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 University of Utah prepared this report to highlight the safety and soundness of Industrial Banks. The banking industry enjoyed strong profitability and solid financial condition in 2022. While the banking industry is sound and safe as of December 31, 2021, the industrial bank sector continues to achieve superior earning strength and strong capital and asset quality ratios. As expected, economic conditions are causing a small increase in troubled loan ratios of industrial banks, leading to increased reserves for potential losses.

The Utah Center for Financial Services at the University of Utah prepared this report to highlight the safety and soundness of Industrial Banks. While the banking industry is sound and safe as of September 30, 2022, the industrial bank sector continues to demonstrate superior financial strength.

The Utah Center for Financial Services at the University of Utah prepared this report to highlight the safety and soundness of Industrial Banks. Key safety and soundness measures in banking are Capital, Asset Quality, and Profitability. We have compared levels of Capital, Asset Quality and Profitability for the US banking industry and the industrial banking sectors. The underlying financial information is drawn from the June 30, 2022 call report data for individual banks and for aggregated banking industry segments.

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 for the US banking industry and the industrial banking sectors. The underlying financial information is drawn from the March 31, 2022 call report data for individual banks and for aggregated banking industry segments. While the banking industry is sound and safe as of March 31, 2022, the industrial bank sector continues to demonstrate superior financial strength.

Key measures of an insured institution’s safety and soundness are capital adequacy, asset quality and profitability. We have compiled and analyzed data related to these measures to provide an objective view of the US banking industry or a banking industry segment’s safety and soundness profile. All data is derived from FDIC quarterly call reports as of September 30, 2021.

Key measures of an insured institution’s safety and soundness are capital adequacy, asset quality and profitability. We have compiled and analyzed data related to these measures to provide an objective view of the US banking industry or a banking industry segment’s safety and soundness profile.

Key measures of an insured institution’s safety and soundness are capital adequacy, asset quality and profitability. We have compiled and analyzed data related to these measures to provide an objective view of the US banking industry or a banking industry segment’s safety and soundness profile. Industry segments in our report include: all insured institutions; industrial banks (a/k/a industrial loan companies or ILC’s); commercially-owned industrial banks; and insured institutions net of industrial banks (“Other Banks”). All data is derived from FDIC quarterly call reports as of March 31, 2021.

An honest comparison of the supervisory framework of industrial banks versus bank holding companies.

An important issue raised by some commentators is whether the lack of consolidated supervision of the parent companies of industrial banks (IBs) by the Federal Reserve is serious enough to require new legislation, such as the Close the IB Loophole Act. To gain more information regarding this issue, the U.S. House of Representatives Subcommittee on Consumer Protection and Financial Institutions held a hearing on “Banking Innovation or Regulatory Evasion? Exploring Trends in Financial Institution Charters” on April 15, 2021.

The Bank Policy Institute (BPI) recently made erroneous allegations against ILCs and industrial banks without source documentation. The following comparison provides facts and evidence about their claims.

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.

Key measures of an insured institution’s safety and soundness are capital adequacy, asset quality and profitability. We have compiled and analyzed data related to these measures to provide an objective view of the US banking industry or a banking industry segment’s safety and soundness profile. Industry segments in our report include: all insured institutions; industrial banks (a/k/a industrial loan companies or ILC’s); commercially-owned industrial banks; and insured institutions net of industrial banks (“Other Banks”). All data is derived from FDIC quarterly call reports as of December 31, 2020.

Key measures of an insured institution’s safety and soundness are capital adequacy, asset quality and profitability. We have compiled and analyzed data related to these measures to provide an objective view of the US banking industry or a banking industry segment’s safety and soundness profile. Industry segments in our report include: all insured institutions; industrial banks (a/k/a industrial loan companies or ILC’s); commercially-owned industrial banks; and insured institutions net of industrial banks (“Other Banks”). All data is derived from FDIC quarterly call reports as of September 30, 2020.

Most people may not be familiar with industrial banks (IBs). Yet these financial institutions have been around for more than a century and predate the establishment of the Federal Reserve in 1913. Throughout the industry’s history, the only way a non-financial firm could enter banking was through the establishment of an IB.

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.