Close the ILC Loophole Act
This bill limits the exemption from certain banking regulations applicable to industrial loan companies to those companies approved to receive Federal Deposit Insurance Corporation insurance before September 23, 2021, or companies with an application pending as of September 23, 2021. Industrial loan companies are state chartered institutions that provide several services similar to banks, such as originating loans and processing payments.
Parent companies of such industrial loan companies are subject to the supervision of the Board of Governors of the Federal Reserve System.
The bill also sets forth procedures regarding a change in control of an industrial loan company.
The Government Accountability Office must report on the effects of industrial loan companies, industrial banks, and other similar institutions on the economy, including the effect on competitiveness, market structure, and different industries.