Opponents of industrial banks (also known as Industrial Loan Companies, or ILCs) are using the Wal-Mart Bank application for federal deposit insurance to call for ILC restrictions that could limit consumer choice and competition in the financial services industry, said AFSA in an April 10th public hearing held in Arlington, VA by the Federal Deposit Insurance Corporation (FDIC).

"While the opposition to industrial banks is primarily theoretical and astoundingly speculative, the practical impact of restricting competition provided by industrial banks would be a reduction in financial products offered in the marketplace," said Robert McKew, AFSA's general counsel and senior vice president. McKew was part of a panel that also included Kenneth Redding of America's Community Bankers, Arthur Johnson of the American Bankers Association and Terry Jorde of the Independent Community Bankers of America.

The FDIC is holding a total of three public hearings—on April 10th and 11th in Arlington and on April 25th in Kansas City—to hear views on the Wal-Mart deposit insurance application. Read AFSA's news release and testimony presented on April 10th.