ILCs are state-chartered FDIC-insured banks that were first established early in the twentieth century to make small loans to industrial workers. As insured banks, ILCs are supervised by the FDIC as well as by the chartering state.
However, under a special exemption in current law, any type of company, including a commercial or retail firm, may acquire an ILC in a handful of states - principally Utah, California, and Nevada - and avoid the activity restrictions and supervisory requirements imposed on bank holding companies under the federal BHC Act.