The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved deposit insurance applications submitted by Ford Motor Company and General Motors Company to establish Ford Credit Bank and GM Financial Bank, both Utah-chartered industrial banks based in Salt Lake City, Utah. FDIC staff evaluated the applications against seven statutory factors, including financial condition, capital adequacy, earnings prospects, management fitness, risk to the Deposit Insurance Fund, community convenience and needs, and consistency of corporate powers with the Federal Deposit Insurance Act. Ford Credit Bank plans to provide nationwide automotive financing primarily by purchasing retail installment sales contracts from independent Ford dealers, funded mainly through retail savings accounts and time deposits gathered via its website and mobile application. GM Financial Bank plans to provide nationwide automotive financing primarily by purchasing retail installment sales contracts from GMF, funded mainly through savings accounts and time deposits via its website and mobile application. Both approvals are subject to conditions and written agreements, including a requirement to maintain a minimum 15 percent Tier 1 leverage ratio and parental support for the banks’ capital and liquidity positions. The FDIC approval orders will expire if the banks are not established within 12 months, unless the FDIC extends the period.
Federal Deposit Insurance Corporation 2026-01-22
Federal Deposit Insurance Corporation approves deposit insurance for Ford Credit Bank and GM Financial Bank with 15 percent Tier 1 leverage requirement
The Federal Deposit Insurance Corporation (FDIC) approved deposit insurance applications for Ford Motor Company and General Motors Company to establish Ford Credit Bank and GM Financial Bank, both Utah-chartered industrial banks. The approvals, subject to conditions including a minimum 15 percent Tier 1 leverage ratio, will expire if the banks are not established within 12 months.