Close the Shadow Banking Loophole Act

This bill changes federal rules for industrial banks, which are state-chartered companies that can take insured deposits. Only industrial banks approved for federal deposit insurance on or before September 23, 2021, would remain exempt from the federal definition of a bank. Applications pending since that date would need a public comment period, a hearing, and a two-thirds FDIC board vote, and would be treated as denied if not approved before September 30, 2026. The bill also gives regulators, including the FDIC, power to examine and require reports from the parent companies of industrial banks. It also requires regulators to block most changes in who controls an industrial bank, with some exceptions.

Full text and official record on Congress.gov

Sponsors

• John Kennedy Republican sponsor
• 1 cosponsors