Do you see what ILC?
An ILC charter basically allows a non-bank to set up a banking subsidiary to provide banking services, such as credit cards and consumer loans. Most ILCs are either financial service institutions, such as Merrill Lynch or Goldman Sachs, or industrial companies that use ILCs to finance customers' purchases of their products, such as General Motors' (NYSE: GM) auto loans. Despite all the commotion about ILCs, they are still minuscule in stature, with 61 approved ILCs holding roughly $140 billion in assets and around $100 billion in deposits. This is around 3% of the $3 trillion in FDIC-insured deposits and less than 2% of the $9 trillion in U.S. banking assets.
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