A US banking trade lobby has called on the Federal Deposit Trade Insurance Corp to throw out an attempt by Square to operate as an industrial loan corporation (ILC), and demanded a two-year moratorium on ILC deposit insurance applications. An Industrial Loan Charter would give Square permission to carry out banking services but also enable it to continue providing other non-financial commercial services – a practice that is denied to fully-licensed banks. In theory Square, which applied for an ILC rather than a traditional banking license, will be able to continue to operate its food delivery business Caviar as well as the provision of its payment terminals.

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