Industrial Banks

When Governor Davis signed Senate Bill 2148 (Polanco) into law in the fall of 2000, it transformed deposit taking industrial loan companies into a new class of financial institutions called industrial banks. Industrial banks differ from commercial banks in that they cannot accept demand deposits and their parent companies are exempt from the Bank Holding Company Act for this reason. Since the passage of Senate Bill 2148, industrial banks are subject to the same laws, regulations, and examinations as commercial banks.