PlainBillCongress, translated.Legislation. Context. Public interest.Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Congressional Research Service
Version 00 · Introduced in Senate · Dec 14, 2023
Close the Shadow Banking Loophole Act
This bill provides for the federal regulation and supervision of industrial banks, also known as industrial loan companies (ILCs), and their parent companies. ILCs are state-chartered institutions owned by nonfinancial businesses (parent companies) that provide several services similar to banks, such as originating loans and processing payments. Under current law, the parent companies are not subject to federal banking supervision, however, the Federal Deposit Insurance Corporation (FDIC) may grant deposit insurance to these institutions.
Under the bill, certain pending ILC deposit insurance applications must receive votes from two-thirds of the FDIC board to be approved. The bill also sets a deadline for FDIC to consider pending applications. If FDIC does not approve an application before this deadline, the application is deemed to have been denied.
People & committees
Sen. Brown, Sherrod [D-OH] · D–OH
Legislative record
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Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Introduced in Senate
Primary sources
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Source last updated: May 27, 2025. Consult Congress.gov for the current record.
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