South Korea's Hyundai gets ECB approval to open bank in Europe

South Korean carmaker Hyundai Motor Group announced Monday that it received approval from the European Central Bank (ECB) to open a new bank in Europe to offer car financing.

The bank is expected to start operation in December and will be based in the German financial capital of Frankfurt, the carmaker's financing arm, Hyundai Capital Services, said.

The bank, to be known as Hyundai Capital Bank Europe (HCBE), is expected to be "a major booster for Hyundai and Kia car sales in Europe," the company said.

Hyundai Motors and Kia Motors together make up the fifth largest carmaker in the world.

The bank plans to offer "direct auto financing services - dealer financing, installment financing, lease, insurance brokerage and others - to consumers."

The ECB issued the new bank's licence on September 23 after "a deep review" by German financial authority BaFin.

The new bank will be created from Hyundai Capital Germany GmbH, which the South Koreans set up in 2010 with Santander Consumer Bank AG to provide car financing.

Hyundai is planning other banks in Spain, France and Italy, with the Frankfurt-based bank acting as European headquarters, a spokeswoman said.

Last update: Mon, 17/10/2016 - 14:24

More from Business

Facebook to build data centre in Denmark

The Danish city of Odense and social media giant Facebook announced on Thursday the city was to host a new European...

Freight train from China crosses 12,000 kilometres to London

The first Britain-bound freight train from China arrived in London on Wednesday, completing an 18-day trip across...

US prosecutors finalize 7.2-bln-dollar settlement with Deutsche Bank

The US Justice Department announced a 7.2-billion-dollar settlement Tuesday with Deutsche Bank over allegations that...

General Motors announces 1-billion-dollar investment in US workforce

General Motors will join other carmakers in opting to invest and hire inside the United States, the company...

Tobacco giant BAT agrees to 49-billion-dollar takeover of US rival

British American Tobacco Plc on Tuesday said it has finalized a deal to acquire 57.8 per cent of shares of US rival...