The Independent Community Bankers of America (ICBA) said the Office of the Comptroller of the Currency (OCC) should scrap its proposal to grant special-purpose bank charters to financial technology (fintech) companies.
In a comment letter, ICBA said the OCC should rescind the proposal and request specific congressional authorization to grant fintech charters.
“ICBA welcomes a robust discussion on responsible innovation and supports the agency’s Office of Innovation,” ICBA representatives wrote. “However, ICBA continues to have strong concerns about issuing special purpose national bank (SPNB) charters to fintech companies without spelling out clearly the supervision and regulation that these chartered institutions and their parent companies would be subject to.”
If the proposal is enacted, the agency should publish rules subject to public comment and hold outreach meetings on the new category of bank charters, ICBA wrote. The OCC should also answer questions on how these firms would be supervised as they enter the space now occupied by regulated national banks. The agency should also clarify to what extent it has consulted other state and federal regulators and their role in regulating chartered fintechs, ICBA representatives wrote.
ICBA also sent a letter to the OCC in January, asking it to spell out its examination and supervision expectations for fintech charters and consult with the other banking agencies. The letter also asked for definition of which companies would be eligible for such a charter, and a guarantee that any new chartered institution be subject to the same supervision and regulation as required of community banks.