Utah anchors and dominates industrial banking in the United States

August 3, 2020 (Salt Lake City, Utah) – The Kem C. Gardner Policy Institute today released a groundbreaking analysis detailing the substantial economic benefits of industrial banks in Utah, the nationwide center for this banking segment with a 110-year history. The report, commissioned by the Utah Center for Financial Services at the David Eccles School of Business, shows that Utah headquartered industrial banks held $140.6 billion in assets in 2019, 93.5% of the U.S. total for industrial banks and 0.8% of the U.S. total for any type of bank insured by the Federal Deposit Insurance Corporation (FDIC). 

“Our research shows that Utah’s thriving financial services sector features innovative large-scale banks established under industrial bank charters,” said Levi Pace, senior research economist at the Gardner Institute and lead author of the report. “We’ve seen how being the nationwide center for industrial banking brings career-quality jobs and ongoing community contributions to our state.” 

Also known as industrial loan companies, these state-chartered institutions provide financial services to individuals and organizations, such as making loans and accepting insured deposits. While most bank charters in the U.S. limit bank ownership to financial institutions, nonfinancial companies can also own industrial banks, subject to federal and state laws and regulations. 

“The Utah Center for Financial Services is pleased to sponsor this study of Industrial Banks in Utah,” said Allan Landon, assistant dean at the David Eccles School of Business and executive director of the Utah Center for Financial Services. “The report highlights the scope and contribution of industrial banks to innovation and the Utah economy over many years.” 

Highlights from the report include: 

Industrial banks generate significant economic benefits: In 2019, industrial banks in Utah directly and indirectly generated 6,468 in-state jobs paying $443.8 million in earnings to workers who produced $722.0 million in state GDP, 0.4% of the total for all industries. The associated state and local fiscal impacts included $32.0 million in sales, property, and state income tax revenue. – Industrial banks offer well-paying jobs: In 2019, industrial banks provided 1,824 Utah jobs. Average 

employee compensation was $105,400, 67.3% above the state’s $63,000 average for all industries. – Industrial banks support community development: During their most recent 12-month reporting 

periods, Utah industrial banks funded $1.0 billion in investments and donations to lower-income communities, largely for affordable housing in Utah and other states. Bank employees gave 6,500 hours of volunteer service. 

Several prominent banks began as industrial banks: Utah is also home to 10 former industrial banks 

now operating under commercial bank charters. Their successor banks provided 1,332 in-state jobs in 2019. Total economic impacts of former industrial banks included 4,655 jobs and $315.0 million in employee and self-employment earnings. 

The full report and summary snapshot are both available online. 


The Kem C. Gardner Policy Institute serves Utah by preparing economic, demographic, and public policy research that helps the state prosper. We are Utah’s demographic experts, leaders on the Utah economy, and specialists in public policy and survey research. We are an honest broker of INFORMED RESEARCH, which guides INFORMED DISCUSSIONS, and leads to INFORMED DECISIONSTM. For more information, please visit or call 801-587-3717. 


The Eccles School is synonymous with ‘doing.’ The Eccles experience provides world-class business education with a unique, entrepreneurial focus on real-world scenarios where students put what they learn into practice long before graduation. Founded in 1917 and educating more than 6,000 students annually, the University of Utah David Eccles School of Business offers nine undergraduate majors, four MBAs, eight other graduate programs, a Ph.D. in seven areas, and executive education curricula. The School is also home to 12 institutes, centers, and initiatives, which deliver academic research and support an ecosystem of entrepreneurship and innovation. For more information, visit or call 801-581-7676. 


The Utah Center for Financial Services (UCFS) is an independent research center funded by grants and focused on helping others to understand the dual-banking system and the role of state-chartered banks in the United States. UCFS partners with the Lassonde Entrepreneur Institute and the David Eccles School of Business at the University of Utah to develop targeted curriculum, provide projects for practical application, and offer networking opportunities with industry leaders for both future industry workers and those currently in the workforce. For more information, visit