Ford Credit Bank, GM Financial Bank applications approved by FDIC

The FDIC has approved the deposit insurance applications for both Ford Credit Bank and GM Financial Bank, allowing each to establish a Utah‑chartered industrial bank, subject to conditions.

What Was Approved

• The FDIC’s Board of Directors approved deposit insurance for:

  • Ford: Ford Credit Bank (Salt Lake City, Utah).

  • GM: GM Financial Bank (Salt Lake City, Utah).

• Both are structured as industrial banks that will fund auto lending mainly through insured savings accounts and time deposits gathered online.

Key Conditions

• Each bank must:

  • Maintain a minimum tier 1 leverage ratio of 15%.

  • Be supported by its parent company (Ford Motor Company or General Motors Company) for capital and liquidity needs.

• The FDIC approval orders expire if the banks are not established and operating within 12 months, unless the FDIC grants an extension.

Business Focus

• Ford Credit Bank:

  • Focus on nationwide automotive financing, primarily by buying retail installment contracts from independent Ford dealers.​

• GM Financial Bank:

  • Focus on nationwide automotive financing, primarily by purchasing retail installment sales contracts from GM Financial.

Regulatory Context

• The FDIC evaluated the applications under the statutory “seven‑factor” framework, including financial condition, capital structure, management quality, risk to the Deposit Insurance Fund, and community needs.

• These approvals mark a significant step in allowing large non‑bank commercial firms to use industrial bank charters to offer limited banking services directly to consumers.