Utah Valley Times

WASHINGTON—U.S. Senator Mitt Romney (R-UT) has spearheaded a bipartisan initiative calling for fair treatment of industrial banks by the Federal Deposit Insurance Corporation (FDIC). Alongside a group of colleagues, Senator Romney emphasized the importance of fostering greater competition among regulated banks in Utah and nationwide.

In a letter addressed to FDIC members, the senators highlighted the significance of industrial loan companies (ILCs) and advocated for the fair consideration of deposit insurance applications submitted by these entities. They expressed concerns about regulatory actions that could potentially hinder lawful ILC applications, emphasizing the vital role ILCs play in providing credit access to underserved areas.

The senators underscored the importance of maintaining regulatory integrity within the financial system, stating, "To be clear, the FDIC should not take any actions that would allow ILCs to evade applicable regulatory requirements or undermine the safety and soundness of the financial system."

The bipartisan effort was also joined by Senators Catherine Cortez Masto (D-NV), Susan Collins (R-ME), Kyrsten Sinema (I-AZ), Bill Hagerty (R-TN), Angus King (I-ME), Marsha Blackburn (R-TN), Jacky Rosen (D-NV), Mike Lee (R-UT), Gary Peters (D-MI), Debbie Stabenow (D-MI), and Pete Ricketts (R-NE).

The senators emphasized the need for the FDIC to ensure fair and timely processing of ILC applications, without imposing unnecessary bureaucratic delays. They called for continued supervision of ILCs to uphold safety, soundness, and consumer protection standards while advocating for equal consideration of new applications without prejudice against the ILC charter.

The letter concluded with a strong message urging the FDIC to adhere to existing laws and regulations governing deposit insurance applications, emphasizing the critical role ILCs play in expanding credit opportunities within the regulated banking sector.

The senators' collective stance reflects a bipartisan commitment to promoting fair competition and access to credit in the banking industry, particularly for institutions that serve unique customer needs.