Publications

On December 15, 2020, the FDIC adopted a final rule that imposes certain information requirements and commitments on non-banking companies that acquire a controlling interest in an insured industrial bank or industrial loan company (“ILC”) in connection with a deposit insurance application, change in control notice, or merger application. These commitments include providing the FDIC with ongoing financial and other reports and inspection rights, and committing to maintain the ILC’s capital and liquidity at FDIC-specified levels. A “controlling interest” for these purposes is defined using the same thresholds as the FDIC’s Change in Bank Control Act rules (which is, in most cases, ownership of 10% or more of the ILC’s voting stock). The final rule generally codifies the FDIC’s existing practices used to supervise ILCs and their parent companies, as well as certain practices adopted by the FDIC in approving two ILC deposit insurance applications in March 2020.