GM Financial Bank withdraws its application for deposit insurance
June 24 2024 - 7:00AM
Business Wire
General Motors Financial Company, Inc. (“GM Financial”), the
captive finance subsidiary of General Motors, has announced the
withdrawal of GM Financial Bank’s Interagency Charter and Federal
Deposit Insurance Application (the “application”) from further
processing by the Federal Deposit Insurance Corporation (“FDIC”).
The application was submitted in late 2020 to both the FDIC and
Utah Department of Financial Institutions (“UDFI”).
Throughout this more than three-year process, GM Financial Bank
has worked constructively and transparently to promptly address all
regulatory requests and has developed a strong charter application
that satisfies the statutory criteria for approval in the Federal
Deposit Insurance Act. The business model is also already in effect
for several existing FDIC-insured industrial banks, including other
auto manufacturers, but currently excludes American auto
manufacturers. GM Financial Bank would create value for consumers,
dealers, the General Motors enterprise and American auto
manufacturing in general, as well as address the imbalance of the
current competitive landscape.
On June 14, 2024, the UDFI approved GM Financial Bank’s
application, appropriately underscoring the strength of the
application and the conclusion that General Motors has the
financial resources needed to operate an industrial bank in a safe
and sound manner and in full compliance with applicable laws and
regulations. The UDFI currently supervises the most industrial
banks of any state regulator and is highly knowledgeable about the
unique features of industrial banking. The UDFI regulates roughly
87 percent of the nation’s industrial bank assets and has
supervised these banks for over 35 years.
“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,” said Dan
Berce, President and CEO of GM Financial. “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.”
General Motors Financial Company, Inc. is the wholly-owned
captive finance subsidiary of General Motors and is headquartered
in Fort Worth, Texas. For more information, visit
www.gmfinancial.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240624966754/en/
Lane Borrello, GM Financial Office: (817) 302-7525
Mobile: (817) 781-7779 Lane.Borrello@gmfinancial.com