On July 15, the FDIC Board approved the publication of a request for information on how the FDIC should review filings submitted by industrial banks and industrial loan companies.

Section 6 of the FDI Act requires the agency to consider a number of factors when reviewing an application for deposit insurance as well as filings related to changes in control or merger transactions. The FDIC is seeking input on its approach to evaluating those statutory factors, which include the financial history and condition of the institution, the adequacy of its capital structure, future earnings prospects, the character and fitness of management, the risk posed to the Deposit Insurance Fund, if the institution is serving the community, and whether the institution’s corporate powers align with the purposes of the FDI Act. The RFI included a series of detailed questions on applying the statutory factors, effectiveness of existing regulations, and other topics that have been facing the financial services industry, such as payment stablecoins and technology company participation. Comments must be received 60 days following publication in the Federal Register.

As previously covered by InfoBytes, FDIC Acting Chairman Travis Hill last April discussed how the FDIC should change its approach to processing new bank applications, especially for innovative business models like industrial loan companies.