The Federal Deposit Insurance Corporation approved Ford Credit Bank’s application to become an industrial bank on Thursday, January 22, 2026. The approval allows Ford to operate a state‑chartered bank that is exempt from the Bank Holding Company Act, giving the automaker a new, FDIC‑insured source of deposits and a broader range of financial products.
The charter comes with specific regulatory conditions. Ford Credit Bank must maintain a minimum 15 % tier‑1 leverage ratio, and Ford Motor Company is required to provide capital and liquidity support as a “source of strength.” The FDIC has granted Ford up to 12 months to fully launch and capitalize the bank, a timeline that aligns with the company’s planned rollout of new deposit and lending products.
Strategically, the industrial bank gives Ford a lower‑cost, more stable funding base than wholesale markets or securitizations. By tapping into FDIC‑insured deposits, Ford can reduce its cost of capital, improve margin on auto‑financing, and offer a wider array of savings and deposit products to its customers. The move also dovetails with the Ford+ plan, which seeks to strengthen profitability through integrated mobility and software services, and positions the automaker to finance a growing electric‑vehicle portfolio directly from its own balance sheet.
Ford Credit President Frank Stepan said the new bank will “strengthen our relationship with dealers and customers by providing a seamless, integrated financing experience.” Chief Financial Officer Cathy O’Callaghan added that the bank’s deposit base will “support long‑term growth and give us greater flexibility to invest in electrification and digital services.”
The approval follows a similar decision for General Motors, which also received an industrial bank charter on the same day. The two automakers are now the only U.S. manufacturers with FDIC‑insured banks, giving them a competitive edge in the automotive‑financing market and a platform to cross‑sell financial products across their dealer networks.
In the long run, the industrial bank is expected to generate new revenue streams, lower financing costs, and enhance customer loyalty. By leveraging its dealer network and customer base, Ford can offer tailored savings and deposit products that complement its vehicle financing, potentially boosting overall profitability and supporting the company’s transition to a more diversified mobility business.
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