August 3, 2020 (Salt Lake City, Utah) – The Kem C. Gardner Policy Institute today released a groundbreaking analysis detailing the substantial economic benefits of industrial banks in Utah, the nationwide center for this banking segment with a 110-year history. The report, commissioned by the Utah Center for Financial Services at the David Eccles School of Business, shows that Utah headquartered industrial banks held $140.6 billion in assets in 2019, 93.5% of the U.S. total for industrial banks and 0.8% of the U.S. total for any type of bank insured by the Federal Deposit Insurance Corporation (FDIC).
“Our research shows that Utah’s thriving financial services sector features innovative large-scale banks established under industrial bank charters,” said Levi Pace, senior research economist at the Gardner Institute and lead author of the report. “We’ve seen how being the nationwide center for industrial banking brings career-quality jobs and ongoing community contributions to our state.”
Also known as industrial loan companies, these state-chartered institutions provide financial services to individuals and organizations, such as making loans and accepting insured deposits. While most bank charters in the U.S. limit bank ownership to financial institutions, nonfinancial companies can also own industrial banks, subject to federal and state la