Citizens Ends Auto Lending With Dealers as Banks Pull Back (1)

Citizens Financial Group Inc. is halting new auto lending it does in partnership with car dealers as financial services firms continue to curb their exposure to the sector.

The decision to end indirect auto lending goes into effect July 1, the bank said in a statement Wednesday. Citizens will continue to retain and service auto loans already on its balance sheet, it said.

In indirect auto lending, a bank works with car dealerships to arrange financing for buyers, as opposed to a consumer borrowing from the bank directly. The business line has lost popularity with banks seeking to build more ...