1. Short title This Act may be cited as the Close the Shadow Banking Loophole Act . 2. Industrial banks (a) Definitions In this section: (1) Appropriate Federal banking agency The term appropriate Federal banking agency has the meaning given the term in section 3(q) of the Federal Deposit Insurance Act ( 12 U.S.C. 1813(q) ). (2) Corporation The term Corporation means the Federal Deposit Insurance Corporation. (3) Industrial bank The term industrial bank means an entity described in section 2(c)(2)(H) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1841(c)(2)(H) ), as in effect on the day before the date of enactment of this Act. (b) Exception from definition of bank Section 2(c)(2)(H) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1841(c)(2)(H) ) is amended, in the matter preceding clause (i), by inserting after similar institution the following: which has been approved to receive deposit insurance from the Federal Deposit Insurance Corporation on or before September 23, 2021 (or, with respect to such an entity to which section 2(c) of the Close the Shadow Banking Loophole Act applies, which is in compliance with such section 2(c)), and . (c) Treatment of deposit insurance applications pending on September 23, 2021 (1) In general With respect to an industrial bank that, on the date of enactment of this Act, has an application to receive deposit insurance pending before the Corporation that was submitted on or before September 23, 2021, the Corporation— (A) shall provide for a 90-day public comment period and a public hearing with respect to that application