ICBA Opposes Stellantis Industrial Loan Company Approval, Citing Risks

Washington, D.C. (May 14, 2026) — The Independent Community Bankers of America (ICBA) today expressed serious concern with the Federal Deposit Insurance Corporation’s approval of Stellantis’ industrial loan company application, citing the risks posed by the ILC regulatory loophole.

“The ILC loophole introduces unnecessary risk into the banking system by allowing financial institutions to receive federal deposit insurance while avoiding full regulatory oversight,” ICBA President and CEO Rebeca Romero Rainey said. “If a company wants to own a bank, it should have to operate by the same rules as everyone else.”

As ICBA wrote in its letter to the FDIC opposing Stellantis’ deposit insurance application:

• Industrial loan companies owned by commercial parent companies cannot function as neutral arbiters of credit due to the inherent conflict of interest at the heart of their business model.

• ILCs pose an undue risk of losses to the FDIC’s Deposit Insurance Fund and add unnecessary systemic risks that harm the entire banking system.

• Stellantis Bank USA’s focus on auto loans and related financing, tied exclusively to Stellantis customers and dealers, leaves it vulnerable to downturns in the auto market.

A loophole in the Bank Holding Company Act allows nonbank companies to own or acquire ILCs chartered in a handful of states without being subject to federal consolidated supervision, leaving a dangerous gap in safety and soundness oversight and introducing unnecessary systemic risk into the banking system. In a recent white paper, ICBA details why Congress should close the ILC loophole and the FDIC should delay final decisions on pending ILC deposit insurance applications until all stakeholder feedback is fully incorporated.

ICBA has repeatedly urged the FDIC to pause consideration of pending ILC applications until it has issued rules or otherwise provided greater transparency on ILC filings. ICBA also has called on the agency to reject applications of ILCs that pose undue risks to the Deposit Insurance Fund and that fail to serve the convenience and needs of their communities.

ICBA continues to strongly support the Close the Shadow Banking Loophole Act introduced by Senate Banking Committee members John Kennedy (R-La.) and Andy Kim (D-N.J.) to mitigate risks to consumer privacy, the financial system, and the economy. ICBA and community bankers will continue working with policymakers to advance this much-needed legislation to preserve the separation of banking and commerce and ensure any company that wishes to own a full-service bank is subject to the same rules.

About ICBA

The Independent Community Bankers of America® has one mission: to create and promote an environment where community banks flourish. We power the potential of the nation’s community banks through effective advocacy, education, and innovation.

As local and trusted sources of credit, America’s community banks leverage their relationship-based business model and innovative offerings to channel deposits into the neighborhoods they serve, creating jobs, fostering economic prosperity, and fueling their customers’ financial goals and dreams. For more information, visit ICBA’s website at icba.org.