League supports closing bank charter loopholes
Published by: Jared Weiser
November 17, 2022 | Regulatory
Ensuring a level playing field for all financial service providers is crucial to protecting your credit union’s ability to serve its members. That’s why the League supports U.S. Senator Sherrod Brown’s (D-OH) recently introduced legislation to close the Industrial Loan Company (ILC) bank charter loophole. The current ILC loophole allows fintechs and other companies to obtain a banking charter without complying with the same capital standards or regulatory requirements as credit unions and banks. Unregulated digital financial service providers take advantage of this loophole and offer financial services products that put consumers’ hard-earned assets at risk. The League will continue supporting common-sense consumer protections and regulations, like those already in place for banks and credit unions, to ensure an equal regulatory playfield for all financial services providers to minimize consumer risk and preserve safety and soundness in the national financial system.
