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FDIC Clears Way for Ford, General Motors to Set up Industrial Banks
GM and Ford can now accept FDIC-insured deposits via new industrial banks chartered in Utah, aiming to enhance financing and savings options for vehicle buyers.
- Last week, federal regulators gave conditional approval to General Motors Co. and Ford Motor Co. to create industrial banks that can accept FDIC‑insured deposits for vehicle purchases.
- Affordability pressures in the auto sector prompted the approvals after years of planning, with both industrial banks chartered in Salt Lake City, Utah, a hub for fintech and business-friendly policies.
- Setting up the organization will happen over the next year, and deposits at Ford Credit Bank can fund vehicles, accessories, EV chargers and generate savings opportunities, Frank Stepan said.
- Automakers must support capital and liquidity positions while their banks face a high regulatory capital requirement including a minimum 15% tier 1 leverage ratio, and company officials say the banks should lower funding costs over time.
- Executives say expanded savings options will include certificates of deposit and indirect financing for Ford and Lincoln vehicles, while industrial banks’ limited scope helps serve loyal customers, Stepan said.
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Leaning Left1Leaning Right1Center8Last UpdatedBias Distribution80% Center
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C 80%
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