WASHINGTON — The Independent Community Bankers of America is formally opposing a bank charter application by the payments processor Square, accusing it of trying to “avoid” certain “legal prohibitions and restrictions.”

In a letter to the Federal Deposit Insurance Corp. on Tuesday, Chris Cole, the group's executive vice president and senior regulatory counsel, argued that Square should not be allowed to obtain a Utah-chartered industrial loan company and reiterated the call for a two-year moratorium on all ILCs.

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