TORONTO- Ford's Canadian lending arm is applying to become a bank.
If the application by Ford Credit Canada is approved, the company will change its name to Ford Credit Bank and will be headquartered in Oakville, Ont.
Ford Credit spokeswoman Margaret Mellott says the company, a subsidiary of Ford Motor Co. (NYSE:F), would continue to provide financing for the automaker's dealers and customers.
She said bank status would increase Ford Credit's access to funding once its deposits are covered by the Canada Deposit Insurance Corp., a federal agency.
The approval process is expected to be a lengthy one.
The major automakers' finance arms suffered during the 2008-09 recession as credit tightened, making it difficult or nearly impossible to raise money to fund their lending activities.
