Wal-Mart drops plans to get into banking

Retailing industry giant Wal-Mart has said that they are scrapping their plans to get into the banking sector. The company has been facing a lot of opposition when they announced their plans to open its own banks.

The company said that they have now notified the Federal Deposit Insurance Corp. it was withdrawing an application to open an industrial bank in Utah State.

Jane Thompson, Wal-Mart’s financial services president added in a statement: “We hope this gets us out of the spotlight. The controversy around us and whether we wanted to branch wouldn’t die, even though the facts were to the contrary.”

This announcement is somewhat of a major victory for financial and banking institutions in the country which were afraid of Wal-Mart’s entry into this segment.

They had claimed that the retailing giant would have used the bank to eventually open branches in its stores and dominate the industry.

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