FDIC approves deposit insurance applications submitted by Ford and General Motors.

The Federal Deposit Insurance Corporation approved Ford Motor Company and General Motors to establish banks for deposit insurance, which will offer automotive financial products. The agency stated on Thursday that both Ford Credit Bank and GM Financial Bank will be industrial banks registered in Utah. The FDIC said that these banks will focus on providing automotive financial products, primarily through purchasing retail installment sales contracts. These banks will be required to maintain a minimum tier 1 leverage ratio of 15%, and Ford and GM will be required to support the capital and liquidity of their respective banks.