Close the Shadow Banking Loophole Act regulates industrial banks and their parent companies seeking deposit insurance.
The Close the Shadow Banking Loophole Act addresses applications for deposit insurance submitted by industrial banks to the Federal Deposit Insurance Corporation. It mandates a 90-day public comment period and a public hearing for industrial banks with pending applications submitted before September 23, 2021. The Corporation must approve such applications by a two-thirds vote of its Board of Directors. If not approved by September 30, 2026, the applications are deemed denied.
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