The Federal Deposit Insurance Corporation (FDIC) approved a deposit insurance application submitted by Stellantis Financial Services to establish Stellantis Bank USA.
Stellantis is a multinational automotive manufacturing corporation that owns the Chrysler, Dodge, Ram and Jeep brands, among others. Stellantis Bank USA will be a Utah-chartered industrial bank.
Stellantis Bank USA’s proposed business model will focus on providing automotive financing products, mainly through the purchase of retail installment contracts from independent Stellantis dealers. Funding will primarily consist of deposits from affiliated entities, brokers, and listing services, as well as from consumers and businesses through the bank’s website and mobile application.
Applications for deposit insurance are evaluated on seven factors that include: financial history and condition; adequacy of the institution’s capital structure; future earnings prospects; the general character and fitness of management; the risk presented by the institution to the Deposit Insurance Fund; the convenience and needs of the community to be served; and whether the institution’s corporate powers are consistent with the purposes of the Federal Deposit Insurance Act.
FDIC staff found that Stellantis Bank USA satisfied the factors for approval, subject to certain conditions and written agreements.
Among other conditions, Stellantis Bank USA will be required to maintain a minimum 15 percent tier 1 leverage ratio. Also, Stellantis N.V. and two of its subsidiaries will be required to support the bank’s capital and liquidity positions.
The FDIC approval order expires if Stellantis Bank USA is not established within 12 months, unless extended by the FDIC.