FDIC Finalizes Rule for Supervision of ILC Parents

On December 15, 2020, the Federal Deposit Insurance Corporation (“FDIC”) finalized a rule that codifies its approach to the supervision and regulation of parent companies of industrial loan companies and industrial banks when the parent company is not subject to consolidated supervision by the Federal Reserve.

The Final Rule will apply to companies that become “Covered Companies” on or after April 1, 2021. It generally will not apply to companies that already own an ILC and will not apply to companies that own ILCs but are subject to consolidated supervision by the Federal Reserve.

Please click here to read the full alert memorandum.