Nissan pulls ILC application

• Key insight: The Japanese automaker's decision to withdraw its application for an industrial loan company charter from the Federal Deposit Insurance Corp. comes as many other automakers have made similar applications and been approved.
• Expert quote: "NMAC/IFS will continue to support Nissan, INFINITI and dealer customers through its existing financial services operations." — Nissan spokesperson
• Supporting data: The Japanese car manufacturer posted a net loss of roughly 533.1 billion yen, roughly $3.4 billion for the fiscal year ending in March 2026, but later posted a profit in its Q1 2026 quarterly report.

Nissan's financial services arm Nissan Motor Acceptance Company withdrew its application with the Federal Deposit Insurance Corp. to form a Utah-based industrial loan company, American Banker confirmed with the Japanese automaker on Monday.

"Nissan has withdrawn its application to establish Nissan Bank U.S. following an evaluation of the initiative's scope, timing and requirements," a spokesperson told American Banker. "NMAC/[Infiniti Financial Services] will continue to support Nissan, INFINITI and dealer customers through its existing financial services operations."

The company originally applied for an ILC charter in June 2025, saying at the time the company was looking to offer consumers competitive rates and pursue a more efficient lending model with its dealerships — which number more than 1,000 around the country — as well as locally owned dealerships. 

"For over 40 years, NMAC has supported our dealer network with stable, relationship-driven financing," said Kevin Cullum, president of NMAC at the time. "Forming Nissan Bank U.S. gives us greater flexibility to serve dealers more efficiently and competitively — so they can better serve their customers. It also deepens our support for locally owned dealerships, many of which are small businesses that anchor their communities. From small towns to major markets, this Bank will help dealers access the tools they need to grow — while reinforcing our long-term investment in the U.S. market." 

The move comes after the Japanese automaker posted a net loss of roughly 533.1 billion yen, or $3.4 billion, for the fiscal year ending in March 2026. The company's more recent financial disclosures have improved, however, with the most recent quarterly report posting a profit.

ILCs

Nissan applies for industrial loan company charter

June 23, 2025 4:10 PM

By Kate Berry

Like traditional banks, ILCs are regulated and insured by the FDIC and may offer various loan types and deposit-like accounts. But unlike traditional bank holding companies, the parent companies of ILCs are exempt from the Bank Holding Company Act, provided they technically abstain from offering nominally demand deposit accounts. 

Banking trade groups and consumer advocates have long called ILC parent company's nonbank designation a potential loophole that could be exploited by a large retailer to effectively offer banking services without being subject to the same consolidated supervision regime that banks are subject to. Banks have also argued that the ILC charter unnecessarily blurs the long-standing barrier between banking and commerce.

Stellantis and another auto behemoth, General Motors, also submitted applications in February 2025. BMW and Toyota already have ILC charters, and Ford had its application approved in January of this year. 

The banking industry's opposition to the approvals have been relatively muted, however, given that the industry has more urgent issues to contend with. Banking experts have called these ILC applications relatively "plain vanilla" charters to engage in captive auto lending, meaning the ILCs don't in themselves represent a serious competitive threat to banks.