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House approves bill letting FDIC-insured ILCs and banks use 'bank' or 'Savings Bank' in names
Summary
House Bill 26 authorizes FDIC‑insured Industrial Loan Corporations and banks to use 'bank' or 'Savings Bank' in their public names; sponsor Bradshaw said the change supports Utah’s financial-industry growth. The House approved the bill 67–2 after debate and declarations of conflict of interest by several members.
Representative Bradshaw introduced HB26, which amends naming rules to permit FDIC‑insured Industrial Loan Corporations (ILCs) and FDIC‑insured banks and ILCs to use the term "bank" or "Savings Bank" in their names. Bradshaw said the change helps Utah attract and retain financial-industry headquarters and jobs, noting other states already permit the practice.
On the floor members raised concerns about public confusion and standards for the use of the word "bank." One longtime banker said he worried the change could mislead consumers about institutions' nature. Several legislators declared conflicts of interest before the vote, stating ownership or professional relationships with banking institutions.
The House recorded the vote: HB26 passed with 67 yes votes and 2 no votes and will be forwarded to the Senate.
