A bipartisan group of senators is supporting “industrial loan company” charters, a move that puts them at odds with House legislation over a controversial pathway for financial technology companies to access the traditional banking system.
The five Republicans and four Democrats say the charters, which can be issued by the Federal Deposit Insurance Corporation, allow “new and expanded credit opportunities in the regulated banking sector.” Their claim also puts them at odds with state banking regulators who say such charters are a way to sidestep necessary oversight.
The lawmakers say companies that obtain the charters perform niche lending in areas often ignored by the large banks.
