The FDIC should clearly set out the circumstances under which it would be required to disapprove a deposit insurance application or other industrial loan bank or industrial loan company transaction, ABA recommended in a comment letter to the agency today.
The American Bankers Association joined the Bank Policy Institute and the Consumer Bankers Association today in expressing strong opposition to an application for deposit insurance submitted by Rakuten—a major Japanese e-commerce company—for its U.S. bank subsidiary, Rakuten Bank America.
The FDIC today issued a proposed rule to require certain conditions and commitments for each deposit insurance application approval by an industrial loan company whose parent company is not subject to Federal Reserve supervision.
A recent deposit insurance application by Rakuten—a major Japanese e-commerce company—for its U.S. bank subsidiary Rakuten Bank America could pose potential risks for the Deposit Insurance Fund if approved, the American Bankers Association cautioned in a letter to FDIC Chairman Jelena McWilliams today.
The application by Rakuten—a major Japanese e-commerce company—for deposit insurance for its prospective U.S. bank subsidiary does not meet requirements imposed by the Federal Deposit Insurance Act, ABA and the Bank Policy Institute told the FDIC in a letter today.
Rakuten, the largest e-commerce company in Japan, today filed an application for an industrial loan company charter in the state of Utah.
Issues of capital and profitability are key themes in the FDIC’s interactions with fintech companies seeking banking charters, FDIC Chairman Jelena McWilliams said today.
With banks engaged in advanced technological innovation and fintech firms pursuing a wide variety of strategic paths, ABA President and CEO Rob Nichols today laid out his views on competition in the financial industry in a speech at a fintech conference hosted by the Federal Reserve Bank of Philadelphia.