Dive Brief:
- Car maker Stellantis received necessary approvals Thursday from the Federal Deposit Insurance Corp. board and the Utah Department of Financial Institutions to operate as an industrial bank.
- The charter will allow Stellantis Bank USA to offer automotive financing for vehicles, parts and accessories, as well as FDIC-insured online deposit accounts, on a national level, Utah regulators said.
- Among other requirements, Stellantis Bank USA must maintain a minimum 15% tier 1 leverage ratio, the FDIC said, and Stellantis N.V. and two of its subsidiaries must support the bank’s capital and liquidity positions. The automaker must establish its bank within 12 months, the regulator said.
Dive Insight:
Stellantis manufactures Chrysler, Jeep, Dodge and Ram vehicles, as well as Fiat, Citroen and Peugeot cars and luxury brands Alfa Romeo and Maserati. Spokespeople for Stellantis didn’t immediately respond to a request for comment.
Stellantis Bank USA, to be headquartered in the Salt Lake City area, brings Utah’s industrial bank total to 16. The company had applied for the ILC charter in February 2025.
In its order approving federal deposit insurance for Stellantis Bank USA, the FDIC said the entity must have initial capital of at least $150 million, among other conditions.
The bank will be a wholly owned subsidiary of Stellantis Financial Services, itself an indirect subsidiary of Stellantis N.V. The financial services unit has consumer lending licenses in most states, Utah regulators said.
The ability to take deposits allows the car manufacturer to offer loans at competitive rates, at a time when the average price for a new car exceeds $50,000.
After few industrial loan company charters were granted during the Biden administration, Trump-appointed regulators have signaled greater acceptance of ILCs.
Fellow car makers Ford and GM received approvals for ILC charters in January; Nissan applied last June. Toyota and BMW also have ILC charters, approved prior to the 2007-08 financial crisis.
In February, financial services firm Edward Jones received the green light to launch an industrial bank. Payments companies PayPal and Affirm have also applied for ILC charters, in Utah and Nevada, respectively.
The Independent Community Bankers of America, a trade group, expressed “serious concern” Thursday with Stellantis’ approval, saying the ILC regulatory loophole poses risks because it allows companies to receive federal deposit insurance without oversight by the Federal Reserve.
ILCs owned by commercial parent companies can’t be “neutral arbiters of credit” given the conflict of interest inherent to their business model, the ICBA contended. And Stellantis Bank USA’s auto financing focus puts it in a vulnerable position if there are downturns in the auto market, the trade group said.
