Deposit insurance for a new Utah-chartered bank owned by a financial arm of auto manufacturing giant Stellantis and which will focus on nationwide auto financing was approved by the federal insurance agency, it said Thursday.
Netherlands-based Stellantis owns such auto brands as Chrysler, Dodge and Jeep in the U.S., and Fiat, Opel and Peugeot – among others – in Europe.
According to the Federal Deposit Insurance Corporation (FDIC), it approved the insurance for Stellantis Bank USA, which will be a Utah-chartered industrial bank. The bank is owned by Stellantis Financial Services U.S. Corp.
“Stellantis Bank USA’s proposed business model will focus on providing automotive financing products nationwide, primarily through the purchase of retail installment contracts from independent Stellantis dealers,” the agency said in a release. “Funding will primarily consist of deposits from affiliated entities, brokers, and listing services, as well as consumers and businesses nationwide via the bank’s website and mobile application.”
Among the conditions under which the insurance application was approved, FDIC said, was that Stellantis Bank USA will be required to maintain a minimum 15% tier 1 leverage ratio, and the parent company, Stellantis N.V., and two of its subsidiaries will be required to support the bank’s capital and liquidity positions.
The insurance approval expires if Stellantis Bank USA is not established within 12 months, unless extended by the FDIC, the agency said.
FDIC Approves the Deposit Insurance Application for Stellantis Bank USA, Salt Lake City, Utah
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