August 19, 2022

Comments on Ford Credit Bank Deposit Insurance Application

The Independent Community Bankers of America (ICBA)1 appreciates the opportunity to comment on the federal deposit insurance application of Ford Credit Bank (the Bank). ICBA has consistently opposed the industrial bank charter and the ownership of FDIC-insured institutions by non-financial firms.

We believe this arrangement creates risks to consumers, the financial system, and even to the commercial parent companies of industrial banks. Therefore, we strongly urge the FDIC to reject Ford Credit Bank’s application for deposit insurance. According to the Bank’s public application, the Bank “will focus on auto-related lending and help Ford promote adoption of electric vehicles across the nation as a de novo Utah industrial bank located in Salt Lake City, Utah.”

The Bank will be a wholly owned subsidiary of Ford Motor Credit Company, LLC (Ford Credit), which is in turn a wholly owned subsidiary of the Ford Motor Company (Ford).