GMAC Financial Services has announced that its application to become a bank holding company under the Bank Holding Company Act of 1956, as amended, has been approved by the board of governors of the Federal Reserve System.

In addition, GMAC Bank has received approval from the Utah Department of Financial Institutions (UDFI) to convert to a state bank. As a bank holding company, GMAC will have expanded opportunities for funding and access to capital, which are expected to provide increased flexibility and stability.

GMAC offers automotive finance, real estate finance, insurance, commercial finance and online banking in North America, South America, Europe and Asia-Pacific.

As a bank holding company, GMAC aims to resume automotive lending to a broader spectrum of customers to support the availability of credit to consumers and businesses for the purchase of automobiles.

Alvaro Molina, CEO of GMAC, said: As a bank holding company, GMAC will be competitively positioned for the long-term to provide financing to auto and mortgage consumers and businesses such as automotive dealers.

Meanwhile, GMAC has sold $5billion of its preferred membership interests and warrants to the US Department of the Treasury as a participant in the Troubled Assets Relief Programme established under the Emergency Economic Stabilization Act of 2008.