多宝游戏下载 Approves Rule to Ensure Safety and Soundness of Industrial Banks
For Release
WASHINGTON鈥 The Federal Deposit Insurance Corporation (多宝游戏下载) approved a final rule that will require certain conditions and commitments for each deposit insurance application approval, non-objection to a change in control notice, and merger application approval that would result in an insured industrial bank or industrial loan company becoming a subsidiary of a company that is not subject to consolidated supervision by the Federal Reserve Board.
The final rule is substantially similar to the proposed rule, and it will require a covered parent company to enter into written agreements with the 多宝游戏下载 and the industrial bank to: address the company鈥檚 relationship with the industrial bank; require capital and liquidity support from the parent to the industrial bank; and establish appropriate recordkeeping and reporting requirements. The rule will codify the 多宝游戏下载鈥檚 current supervisory processes and policies with respect to industrial banks and ensure the safe and sound operation of these institutions as well as provide the necessary transparency regarding the 多宝游戏下载鈥檚 supervisory practices.
鈥淭his rule addresses two important supervisory goals: it provides transparency by codifying 多宝游戏下载鈥檚 long-standing practice,鈥 said 多宝游戏下载 Chairman Jelena McWilliams, 鈥渨hile ensuring that all industrial bank applicants for deposit insurance and their parent companies understand regulatory expectations before they commence the application process.鈥
Industrial banks have operated in the United States for more than a century. Congress made all industrial banks eligible for deposit insurance in 1982. In 1987, Congress expressly adopted an exception to the Bank Holding Company Act permitting a parent company to own and control an industrial bank without becoming subject to regulation and supervision by the Federal Reserve Board as a bank holding company based solely on such control. Each industrial bank is state-chartered and supervised by the 多宝游戏下载 under the same regulatory and supervisory framework as other state non-member banks.