Close the Shadow Banking Loophole Act

This bill closes a regulatory gap for "industrial banks" (entities offering banking services without full bank oversight, often called "shadow banks"). It requires these institutions to obtain FDIC deposit insurance approval by September 23, 2021, with stricter review for pending applications (90-day public comment, 2/3 board vote), and deems unapproved applications denied by September 30, 2024. The bill also gives the FDIC authority to examine and impose conditions on parent companies of these industrial banks, similar to how bank holding companies are regulated, tailored to the parent company's size and complexity. It directly affects industrial banks seeking deposit insurance and their parent companies, aiming to increase oversight of institutions operating outside standard banking rules.