The American Financial Services Association (AFSA) has welcomed the Federal Deposit Insurance Corporation’s approval of deposit insurance for Stellantis Bank USA, saying the decision supports stability in the vehicle finance industry.
In a statement, AFSA said the approval allows Stellantis Bank USA to operate as a Utah-chartered industrial bank with federal deposit insurance, expanding financing options for consumers purchasing vehicles.
The FDIC Board of Directors approved the application for Stellantis Bank USA, based in Salt Lake City, Utah. The bank will primarily fund its operations through deposits and must maintain a minimum 15% Tier 1 leverage ratio, along with additional capital and liquidity support from its parent company.
Industrial banks such as Stellantis Bank USA allow commercial firms to offer FDIC-insured financial products while maintaining ties to their parent corporations. Similar structures are used by other major automakers, including Ford and General Motors, to support captive finance operations, according to Banking Dive.
The American Financial Services Association represents more than 410 member companies in the consumer credit sector, promotes financial literacy, supports responsible lending practices, advocates before legislatures and regulatory bodies, maintains relationships with Congress and agencies, and offers educational resources such as compliance training programs.
