An industrial bank is a state-chartered financial organization that is not subject to federal banking agency regulation and is often held by a commercial company. Industrial banks take deposits from clients and lend money to individuals and small companies.
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Another name for industrial banks is industrial loan companies (ILCs). Only a few states grant charters to industrial banks; most of these charters are granted by the state of Utah.
Comprehending Industrial Banks
In order to give low-to-moderate-income industrial workers who couldn’t get credit at regular lending institutions a way to access cash, industrial banks were first established in the early 1900s.