A federal bank regulator is proposing to require parent companies of industrial banks to serve as their financial backstops.
Industrial bank parent companies would be subject to high levels of capital and liquidity requirements as a condition for deposit insurance approval, mergers, or changes in control, according to a proposed rule released Tuesday.
The goal is for parent companies to “serve as a source of strength for their industrial bank subsidiaries,” Federal Deposit Insurance Corp. Chairman Jelena McWilliams said in a statement accompanying the proposal.
The proposed rule comes as the FDIC is said to be close to approving a ...
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