In the face of a wave of opposition against the prospect of a Wal-Mart-backed bank, Utah's industrial bank leaders, legislators and financial regulators gathered Monday to hash over industry issues and circle the wagons.

The Utah Industrial Bank Symposium, held at the Governor's Mansion, featured the entire Utah federal congressional delegation, Gov. Jon M. Huntsman Jr., state lawmakers and regulators from the Utah Department of Financial Institutions and the Federal Deposit Insurance Corp.

"I do believe that Utah, thanks to (Financial Institutions Commissioner) Ed Leary, has done more than any other state in really carving out this niche as a center of excellence," Huntsman said. "Nationally, Utah has become or is rapidly becoming the face of (industrial loan corporations). All you have to do is look at the trend line, to look at where the last few years have taken us in terms of growth."

Industrial loan corporations, or industrial banks, function much like commercial banks in that they can offer commercial and consumer loans, issue credit cards and offer financing for auto purchases. Most industrial loan banks are owned by financial services companies or other corporations.

In 1992, there were 17 industrial banks chartered in the state, with total assets of about $1 billion, Huntsman said. As of Dec. 31, 2004, there were 29 chartered institutions with $120 billion in total assets. Those institutions include American Express Centurion Bank, Merrill Lynch Bank (the largest, at $66 billion in total assets) and Target Bank.

Despite that growth, the issue likely would have remained under the radar were it not for a single retailer, Leary said.

"The discussion about the merging of banking and commerce likely would have remained an esoteric discussion, in my opinion, had it not been for Wal-Mart," Leary said. Inquiries about banking possibilities from the behemoth retailer have elevated the volume and intensity of public debate, which appears to be nearing Utah's borders.

Critics are concerned that Wal-Mart's interest in establishing an industrial bank may open a Pandora's box (a bank branch in every store), which could devastate community banks, credit unions and others.

Rep. Jim Matheson, D-Utah, advocated expanding Utah's industrial bank charter "in any way we can." But, he said, the Wal-Mart issue has become part of the government's deliberation.

"Quite candidly, we might as well acknowledge that the issue that's out there is that there's a certain entity, called Wal-Mart, that's interested, that's looking at this industry," Matheson said. "When Wal-Mart wants to get involved in something, that tends to draw some attention from folks who aren't too engaged in the financial service industry. If Wal-Mart wants it, they're going to be against it. So that's created a lot more attention in this industry and created some issues in Congress in terms of allowing the expansion of the charter."