GM plans to seek banking charter for auto-lending business: WSJ

GM plans to seek banking charter for auto-lending business: WSJ

© Reuters. The GM logo is seen at the General Motors plant in Sao Jose dos Campos © Reuters. The GM logo is seen at the General Motors plant in Sao Jose dos Campos

(Reuters) – General Motors Co (NYSE:GM) is planning to apply for a banking charter that would allow its lending unit to hold deposits and expand its auto-finance business, the Wall Street Journal reported on Friday, citing people familiar with the matter.

The automaker's finance arm, General Motors Financial Company Inc, has been talking to federal and state banking regulators for months about forming an industrial loan company and could file its applications as early as December, the report said https://www.wsj.com/articles/gm-plans-to-seek-banking-charter-to-grow-auto-lending-business-11606501125?mod=searchresults_pos1&page=1.

"Industrial Loan Company" charters allow non-banks to originate loans and collect insured deposits.

GM did not immediately respond to a Reuters request for comment.

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