FDIC extends comment deadline on proposed industrial bank, ILC requirements to July 1

Thirty more days to comment on a proposed rule for industrial banks or industrial loan companies (ILCs) supervised by the federal bank deposit insurer is provided in a notice published Wednesday in the Federal Register.

The Federal Deposit Insurance Corp. (FDIC) in March proposed a rule that would 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 – after the final rule takes effect – result in an insured industrial bank or industrial loan company becoming a subsidiary of one that is not subject to consolidated supervision by the Federal Reserve Board.

The proposal would also require that before any industrial bank or ILC may become a subsidiary of such a company, both entities would be required to enter into one or more written agreements with the FDIC.

The original public comment deadline was June 1; Wednesday’s notice extends that to July 1.

Reg lookup: Parent Companies of Industrial Banks and Industrial Loan Companies