Square Inc. has reapplied to the Federal Deposit Insurance Corp. (FDIC) for an industrial loan charter more than five months after withdrawing its initial application. The company also filed a second industrial bank charter application with the Utah Department of Financial Institutions (DFI).
Banks and credit unions, which are subject to significantly more regulatory scrutiny than fintech companies, have advocated for regulators to reject such applications until congressional action is taken to address certain safety and soundness concerns.
Find out more about Square’s second charter application and why the industry’s opposition isn’t likely to wane.