Industrial Loan Company

An industrial loan company (ILC) is a financial establishment in the United States that lends money, and may be owned by non-financial organizations. Though the bank itself would be deeply examined by the Federal Deposit Insurance Corporation and state regulators, a debate exists to allow parent companies such as Wal-Mart, which would remain unregulated by the financial regulators, to own such a bank.

"FDICinsured entities are subject to Sections 23A and 23B of the Federal Reserve Act, which limits bank transactions with associates, including the parent company."

The ILC is permitted to have branches in multiple states.

They are state-chartered, and insured by the Federal Deposit Insurance Corporation.

They are currently chartered by seven states, of which

Utah has the most by far according to FDIC, other states permitting them include California, Colorado,

Minnesota, Indiana, Hawaii, and Nevada.

General Electric Co.,
General Motors,
Merrill Lynch & Co. Inc.,
Morgan Stanley,
American Express Co.
Target Corp,
Nordstrom,
Harley-Davidson,
First Data,

SALLIE MAE et al,

Already have set up industrial banks

In May 2005, Warren Buffett's Berkshire Hathaway Inc. announced plans to function a Utah industrial bank to handle consumer loans for its R.C. Willey Home Furnishings stores.

The Blue Cross and Blue Shield association,

Automakers Ford Motor Co.

And DaimlerChrysler AG, Ceridian Corp. await approval.