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Friday, 8 June 2012

Department Store National Bank Credit Cards

Department Stores National Bank (DSNB) is the credit card issuer of Visa and retail private label accounts for Citibank’s relationship with Macy’s, Inc. (formerly known as Federated Department Stores, Inc.). Cards issued by DSNB bear the marks of Macy’s, Inc. store brands such as Bloomingdale’s and Macy’s.

DSNB is a subsidiary of Citibank (South Dakota), National Association (CBSD) and does not have any employees or any branch banking offices. All servicing of the bank’s accounts is currently provided by affiliates and third parties pursuant to contract. As DSNB does not have any employees, CRA activities are allocated to DSNB from the bank’s affiliates, primarily from CBSD, Citi Community Capital, and the Citigroup Foundation (The Foundation).

DSNB was chartered in 2005 under the Competitive Equality Banking Act (CEBA) of 1987. A CEBA bank is not a “bank” for purposes of the Bank Holding Company Act if it engages “only in credit card operations” and does not:
(1) accept demand deposits or other checking accounts;
(2) accept savings or time deposits of less than $100,000, unless for collateral on a loan;
(3) maintain more than one office that accepts deposits;
(4) engage in the business of making commercial loans. These statutory provisions reflect a legislative policy of restricting the ability of CEBA credit card banks to compete with retail banks by limiting the institution’s deposit taking and lending activities.

Since this is a CEBA bank, it cannot make commercial loans. Therefore, the Strategic Plan was developed to address investments and services, not lending. Other than the restriction on lending, there are no legal, financial, or other factors impeding the bank’s ability to help meet the credit needs in its assessment area.

For more information about Department Stores National Bank read here. (PDF File)

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