Federal Deposit Insurance Corporation approves deposit insurance for Stellantis Bank USA subject to 15 percent leverage and parent support conditions

The Federal Deposit Insurance Corporation approved the application for federal deposit insurance for Stellantis Bank USA, a proposed Utah-chartered nonmember industrial bank in Salt Lake City. The bank will focus on nationwide automotive financing, primarily by purchasing retail installment contracts from independent Stellantis dealers, if it satisfies the order’s conditions before opening. The order requires at least USD 150 million in initial paid-in capital, a minimum 15 percent Tier 1 leverage ratio, and capital and liquidity support from Stellantis N.V., FCA North America Holdings LLC, and Stellantis Financial Services U.S. Corporation through written agreements with the FDIC. Funding is expected to come mainly from deposits from affiliated entities, brokers and listing services, and from consumers and businesses nationwide through the bank’s website and mobile application. Other conditions cover separate books and records from affiliates, annual independent audits, prior FDIC non-objection for board and senior executive changes during the first three years, restrictions on transactions with non-U.S. affiliates, and completion of a Community Reinvestment Act strategic plan before opening. Federal deposit insurance will not become effective until the bank obtains its Utah charter and other required approvals and completes a satisfactory FDIC pre-opening visitation. The approval expires after 12 months unless the FDIC grants an extension.