Industrial Banks

Over the five years to 2022, the Industrial Banks industry has advanced further into the public spotlight. Industrial banks, also known as industrial loan companies (ILCs), are FDIC-insured banking institutions that can be owned and operated by nonfinancial institutions. They are often established by nonfinancial enterprises to provide consumer financing, make intracompany transactions or simply enter the credit market. The FDIC's high liquidity requirements as well as competition in this highly concentrated industry have spurred the exit of the least competitive industrial banks.