Edward D. Jones & Co.'s parent company has secured regulatory approval to establish a U.S. bank, marking a significant expansion of its lending capabilities, according to AdvisorHub.
The Federal Deposit Insurance Corporation and the Utah Department of Financial Institutions approved the firm's application. As AdvisorHub reports, Edward Jones first sought an industrial bank charter in Utah in 2020 but withdrew that application amid increased scrutiny from the FDIC. The firm later attempted to distribute bank products through a partnership with Citi in 2023. That effort ended in 2024 after Citi abandoned its third-party distribution strategy. With this latest approval, the firm will move forward independently under the name Edward Jones Bank.
According to the FDIC announcement, Edward Jones Bank will offer securities-based loans nationwide. The bank will fund those loans through sweep deposits from existing Edward Jones clients. The institution will also integrate the firm's current reserve line of credit portfolio and aims to provide clients with greater flexibility in managing borrowing needs.
Regulators imposed specific capital requirements as part of the approval. The bank must maintain a leverage ratio of 9 percent. In addition, Jones Financial Companies and two parent subsidiaries of the broker-dealer must support the bank's capital and liquidity positions.
As AdvisorHub notes, Edward Jones has sought to broaden its offerings to attract higher net worth clients. A bank charter will allow the firm to introduce its own deposit program, issue certificates of deposit, and expand securities-based lending to its roughly nine million clients.
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