Jason Kotter

Check out this new paper from my awesome co-author Gregor Schubert. It's worth a read!

While industrial banks are a small part of total banking assets (about 1%), they play a huge role in Utah, where they make up 20% of bank assets. At their peak in the early 2000s, industrial banks made up 75% of Utah's bank assets.

Utah became a hub for industrial banks thanks to a historical quirk (exemption to the Bank Holding Company Act in 1987 for states with then-active industrial bank charters) and proactive state banking regulators. Today, around 89% of industrial bank assets are headquartered in Utah.

The story behind Salt Lake City's booming banking industry CNBC unlocks the story behind Salt Lake City's booming banking industry. The city's exceptional growth in finance can be traced back to an early catalyst: industrial banking. This little-known type of banking institution allows non-financial companies, such as car manufacturer BMW, to own their own bank. Utah is home to most of America's industrial banks, with 15 of the nation's 23 located in Salt Lake County—a concentration unmatched anywhere else in the country.

Over the last few months, I helped CNBC with a brief segment highlighting the role of industrial banks in Utah. Industrial bank charters allow non-financial companies to own a bank, and these banks have played an important role in the growth of FinTech. Watch the clip at www.cnbc.com/video/2024/1...