Industrial Loan Charters Take Center Stage
Treasury Secretary Scott Bessent used his House testimony Wednesday (Feb. 4) to spotlight an urgency for new bank formation.
More than half of community banks have disappeared since the financial crisis, he told lawmakers, as PYMNTS reported, and “there have been virtually no de novo banks created,” arguing that regulatory tailoring is essential if smaller institutions — and Main Street — are to grow again.
That context helps explain why industrial loan companies (ILCs), within the pantheon of de novo activity, are a strategic priority and option for nonbanks.