Regulatory Alerts2020-03-31 | 2020-06153Parent Companies of Industrial Banks and Industrial Loan Companies
The Federal Deposit Insurance Corporation proposes a rule requiring specific conditions and written agreements for industrial banks or industrial loan companies becoming subsidiaries of companies not subject to Federal Reserve Board consolidated supervision. This action aims to mitigate risks to the Deposit Insurance Fund by ensuring parent companies serve as a source of financial strength for their insured industrial bank subsidiaries. The proposal codifies existing supervisory practices to address concerns regarding the unique risk profiles associated with commercial firms owning industrial banks.
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