An industrial loan company (ILC) or industrial bank is a financial institution in the United States that lends money, and may be owned by non-financial institutions. The vast majority of these according to FDIC are located in Utah. Though the bank itself would be heavily 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. "FDIC-insured entities are subject to Sections 23A and 23B of the Federal Reserve Act, which limits bank transactions with affiliates, including the parent company." (FDIC.gov) The ILC is permitted to have branches in multiple states (which is permitted by many states on a reciprocal basis). They are state-chartered, and insured by the Federal Deposit Insurance Corporation. They are currently chartered by seven states, of which Utah and California have the most, other states permitting them include Colorado, Minnesota, Indiana, Hawaii, and Nevada. In Financial economics, a financial institution acts as an agent that provides financial services for its clients. ... The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency created by the Glass-Steagall Act of 1933. ... Wal-Mart Stores, Inc. ... The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency created by the Glass-Steagall Act of 1933. ... Official language(s) English Capital Largest city Salt Lake City Salt Lake City Area  - Total  - Width  - Length  - % water  - Latitude  - Longitude Ranked 13th 219,887 km² 435 km 565 km 3. ... Official language(s) English Capital Largest city Sacramento Los Angeles Area  Ranked 3rd  - Total 158,302 sq. ... Official language(s) English Capital Denver Largest city Denver Area  - Total   - Width   - Length    - % water  - Latitude  - Longitude Ranked 8th 104,185 sq mi  269 837 km² 280 miles  451 km 380 miles  612 km 0. ... Official language(s) None Capital Largest city Saint Paul Minneapolis Area  - Total   - Width   - Length    - % water  - Latitude  - Longitude Ranked 12th 87,014 sq mi  225,365 km² 250 miles  400 km 400 miles  645 km 8. ... Official language(s) English Capital Largest city Indianapolis Indianapolis Area  Ranked 38th  - Total 36,418 sq. ... Official language(s) Hawaiian and English Capital Largest city Honolulu Honolulu Area  - Total   - Width   - Length    - % water  - Latitude  - Longitude Ranked 43rd 10,941 sq mi  28,337 km² n/a miles  n/a km 1,522 miles  2,450 km 41. ... Official language(s) None Capital Largest city Carson City Las Vegas Area  - Total   - Width   - Length    - % water  - Latitude  - Longitude Ranked 7th 110,567 sq mi  286,367 km² 322 miles  519 km 490 miles  788 km 0. ...

General Electric Co., General Motors, Merrill Lynch & Co. Inc., Morgan Stanley, American Express Co. Target Corp, Nordstrom, Daimler-Chrysler, Harley-Davidson, et al, already have set up industrial banks. In May 2005, Warren Buffett's Berkshire Hathaway Inc. announced plans to operate a Utah industrial bank to handle consumer loans for its R.C. Willey Home Furnishings stores.

External links

• FDIC: Advisory Committee on Banking Policy about ILCs

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