FDIC approves GM Financial Bank, Ford Credit Bank

GM Financial and Ford Credit are one step closer to forming industrial banks following approval this week from the FDIC and Utah Department of Financial Institutions.  

The captives’ applications to form Utah-chartered industrial banks received conditional approvals following the FDIC’s evaluation based on statutory requirements and the banks’ proposed business models, according to a Jan. 22 release.  

GM Financial, the captive finance arm of General Motors, re-applied to form GM Financial Bank on Jan. 31, 2025. The company voluntarily withdrew its initial application, submitted in December 2020, in June 2024. GM Financial was the second-largest auto lender by outstandings at yearend 2024, according to the latest Big Wheels Rankings data. 

Ford Credit, the captive of Ford Motor Co., applied to form Ford Credit Bank in July 2022. Ford Credit was the sixth-largest auto lender by outstandings in 2024, according to Big Wheels.  

Industrial banks, also referred to as industrial loan corporations, are state-charted institutions that are eligible for FDIC insurance. An exemption to the definition of “bank” as outlined in the Bank Holding Company Act allows non-financial companies that are not regulated by a federal banking agency to own and operate industrial banks, according to the Utah Department of Financial Institutions. 

GM Financial Bank 

GM Financial Bank will focus strictly on auto lending and deposits and will “complement GM Financial’s existing lending operations by providing stable and diversified funding through deposit products that will benefit GM Financial and General Motors customers,” according to a Jan. 22 release from the financier.  

The bank will also use GM Financial’s capabilities and resources to provide services to dealers and consumers and will have a main office in Salt Lake County, according to the company. Bill Donnelly, who joined GM Financial in 2020 to lead the bank while it is being established, is president and chief executive. 

Ford Credit Bank 

Ford Credit Bank will primarily provide auto financing products nationwide through purchasing retail installment contracts from independent Ford dealers, according to the FDIC. Funding will derive from retail savings accounts and time deposits through the bank’s website and mobile app.  

The bank marks Ford Credit’s establishment of a U.S.-based industrial bank as the company already operates two banks in Europe, Ford Credit President and Chief Executive Cathy O’Callaghan said in a Jan. 22 statement.  

Evaluating applications 

Deposit insurance applications, according to the FDIC, are evaluated on: 

• Financial condition and history of the institution: 

• Adequacy of the institution’s capital structure; 

• Future earnings prospects; 

• “Character and fitness of the management”; 

• Risk presented to Deposit Insurance Fund; 

• Needs of the community the institution will serve; and 

• If the institution’s “corporate powers are consistent with the purposes of the FDIC.” 

FDIC approval will expire if Ford Credit or GM Financial’s banks are not formed within 12 months, unless an extension is granted. Both banks will be required to maintain a “15 percent tier 1 leverage ratio,” with capital and liquidity supported by the parent companies. The required ratio indicates a strongly capitalized bank and is above standard regulatory requirements.  

Stellantis and Nissan Motor Acceptance Corp. also have pending industrial bank applications, which were submitted in February 2025 and June 2025, respectively, to form Stellantis Bank USA and Nissan Bank U.S. 

“We are encouraged by the FDIC’s recent approvals and what this means for the auto industry,” a Nissan spokesperson told Auto Finance News. “Nissan continues to pursue an industrial bank charter in Utah to help Nissan and Infiniti dealerships grow their businesses and better serve their customers. The bank’s formation remains subject to regulatory review and approval, which is currently underway.” 

Industrial banks are not new for captives. BMW established BMW Bank of North America in 1999, and Toyota Financial Savings Bank was established in 2004. 

This story first appeared on Auto Finance News, a publication of Royal Media.

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