Utah Governor’s Office of Economic Development

Industrial Banks (IB's)1 are financial institutions that have experienced rapid growth in the U.S. over the past decade. The state of Utah has proven to be a particularly attractive place to operate IB's and now hosts the most IB's in the country. IB's chartered in Utah currently hold the bulk of IB industry assets. The flexibility of an IB charter has made it an attractive vehicle for many large and well-known corporations.

IB's are financial institutions authorized to make consumer and commercial loans and to accept federally insured deposits. IB's cannot "demand" deposits if the IB has total assets greater than $100 million. IB's are subject to the same regulatory and supervisory oversight as commercial banks.

IB's are authorized to engage in the "banking business" under the statutory framework of "Title 7." With the exception of demand deposits, IB's may offer the same banking services as commercial banks. FDIC rules and regulations that generally apply to commercial banks also apply to IB's, and the institutions are supervised and examined by both the FDIC and the Utah Department of Financial Institutions.