Square has withdrawn its application for an industrial loan company (ILC) charter from the US Federal Deposit Insurance Corp (FDIC) as it looks to "amend and strengthen" some areas of its application, a spokesperson confirmed. The move comes after the bank was forced by regulators in New York state last month to withdraw its application for a license under the Bank Secrecy Act (BSA) because of concerns about whether it had Square's lending business grew 68% year on year in Q2 to $318m. The New York State Department of Financial Services approved Square's application for a virtual currency licence in June.
Square has withdrawn its application for an industrial loan company (ILC) charter from the US Federal Deposit Insurance Corp (FDIC) as it looks to "amend and strengthen" some areas of its application, a spokesperson confirmed. The payments processor still has an active application with the Utah Department of Financial Institutions, where it will headquarter the new ILC. Square's lending business grew 68% year on year in Q2 to $318m. The New York State Department of Financial Services approved Square's application for a virtual currency licence in June.