The FDIC board today voted 3-2 in favor of a proposal to amend its existing rules governing parent companies of industrial banks and industrial loan companies. Specifically, the proposed rule would amend part 354 of the FDIC’s rules and regulations to establish additional criteria the agency would consider when both assessing the risks presented to an industrial bank by its parent organization and evaluating the industrial bank’s ability to function independently of the parent organization, according to an FDIC summary.
Other proposed changes would clarify the relationship between written commitments and the FDIC’s evaluation of the statutory factors applicable to an industrial bank filing; ensure that a parent company of an industrial bank would be subject to part 354 if there is a change of control at the parent company or a merger in which the parent company is the resultant entity; and provide the FDIC the regulatory authority to apply part 354 to other situations where an industrial bank would become a subsidiary of a company that is not subject to federal consolidated supervision. Comments on the proposal are due 60 days after publication in the Federal Register.
