Close the Shadow Banking Loophole Act

This bill closes a regulatory loophole for "industrial banks" (entities that operate like banks but avoid full banking oversight). It requires all industrial banks seeking FDIC deposit insurance to have their applications approved by September 23, 2021, with pending applications needing a 90-day public comment period, a public hearing, and a 2/3 board vote for approval. Applications not approved by September 30, 2026, will automatically be denied. The bill also extends FDIC supervision to parent companies of these industrial banks, requiring them to undergo examinations and report financial risks to the FDIC, similar to bank holding companies.