General Motors resubmits application to receive deposit insurance

General Motors Financial resubmitted its paperwork to form an industrial bank and to receive deposit insurance less than a year after withdrawing its previous application.

The new application for GM Financial Bank was filed with the Federal Deposit Insurance Corp. on Jan. 31.

The proposed bank “will directly support our business model by providing stable, cost-effective funding,” Dan Berce, GM Financial’s president and CEO, said in a press release.

“The tangible stakeholder benefits are clear: expanded financing options to retail auto consumers, responsible extension of credit across a geographically and economically diverse consumer base, excellent customer service and strong support to dealers and consumers in all economic cycles,” he added.

Bill Donnelly will serve as the bank’s president and CEO

The captive finance unit of General Motors originally submitted applications to the Federal Deposit Insurance Corp. and the Utah Department of Financial Institutions in December 2020. The state regulator approved GM Financial Bank’s application in June 2024, but GM withdrew its FDIC application a few weeks later.

“GM Financial remains confident in the viability of our bank application, which is anchored by a proven, well-capitalized business model led by an experienced management team and supported by the company’s decades of financial services expertise,” Dan Berce, GM Financial’s president and CEO, said in a press release disclosed the decision to withdraw.

“Utah’s approval validates the strength of the bank’s proposed business plan and management team, and we look forward to refiling with the FDIC and UDFI,” he added.