Stellantis ILC application receives FDIC nod for deposit insurance
Stellantis Financial Services U.S., the American financial services division of Dutch automaker Stellantis NV, has been approved by the Federal Deposit Insurance Corp. for deposit insurance as it looks to form a Utah-chartered industrial bank.
Stellantis Bank USA’s proposed business model “will focus on providing automotive financing products nationwide, primarily through the purchase of retail instalment contracts from independent Stellantis dealers,” the FDIC stated in its approval. “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.”
The conditional approval requires the bank to have $150 million in initial capital, undergo an annual independent audit, and agree to deal only within the United States unless approved by the FDIC’s regional director. The bank must maintain a 15% Tier 1 leverage ratio.