Wal-Mart Canada Receives Final Approval To Start Bank

Wal-Mart Canada Corp. confirmed that it has received final approval from the Canadian government to establish a bank, which opens the door for the retailer to offer a much broader range of financial-services products.

The Canadian unit of discount department store giant Wal-Mart Stores Inc. (WMT) first made its bank application in September 2008, to Canada's Office of the Superintendent of Financial Institutions, or OSFI.

Andrew Pelletier, Wal-Mart Canada's spokesman, said the retailer plans to offer "value-focused" financial products and services to meet the everyday needs of customers. "We will announce our first bank product in the near future," Pelletier said. He declined to elaborate.

Wal-Mart already offers certain financial services, such as money transfers, through a partnership with Western Union Co. (WU), but a banking license will allow it to expand into such things as savings accounts and credit cards. Many of Wal-Mart Canada's competitors established banks long ago, including Canadian Tire Corp. (CTC.A.T), Sears Canada Inc. (SCC.T), and Loblaw Cos. (L.T).

Trudy Fahie, who has served as Wal-Mart Canada's vice-president of financial services, has been named president and chief executive of Wal-Mart Canada Bank.

Company Web Site: http://www.walmart.ca

-By Andy Georgiades; Dow Jones Newswires; 416-306-2031; [e-mail]