arrow_back Back to App

Increased Oversight for Industrial Banks and Parent Companies

New rules aim to increase supervision over industrial banks and their parent companies, which are not traditional banks. This means greater security for individuals using these institutions, as they will be subject to more thorough financial and operational checks. The changes are intended to prevent risks in the financial system and protect citizens' deposits.
Key points
Enhanced Scrutiny for Industrial Banks: Deposit insurance applications submitted before September 23, 2021, will require public comment, a public hearing, a 2/3 board vote for approval, and a deadline for decision.
Supervision of Parent Companies: Companies controlling industrial banks that are not traditional banks will face examinations and reporting requirements, similar to large bank holding companies.
Restrictions on Change of Control: Changes in ownership of industrial banks will be more difficult, unless the acquiring entity is already under Federal Reserve supervision or the bank is in financial distress.
Increased Financial Safety: The goal is to reduce risks in the banking system and protect citizens' funds by closely monitoring these institutions.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 117_S_5189
Sponsor: Sen. Brown, Sherrod [D-OH]
Process start date: 2022-12-06
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Close the Shadow Banking Loophole Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_5189.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2022-12-06.

What are the main provisions?

Key points include:

  • Enhanced Scrutiny for Industrial Banks: Deposit insurance applications submitted before September 23, 2021, will require public comment, a public hearing, a 2/3 board vote for approval, and a deadline for decision.
  • Supervision of Parent Companies: Companies controlling industrial banks that are not traditional banks will face examinations and reporting requirements, similar to large bank holding companies.
  • Restrictions on Change of Control: Changes in ownership of industrial banks will be more difficult, unless the acquiring entity is already under Federal Reserve supervision or the bank is in financial distress.
  • Increased Financial Safety: The goal is to reduce risks in the banking system and protect citizens' funds by closely monitoring these institutions.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Brown, Sherrod [D-OH].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Economy Courts and Law