Boston-based Sovereign Bank has received formal approval to convert to a national bank from a savings bank, while Spanish parent company Banco Santander has won approval to convert to a bank holding company.
The respective conversions are expected to take effect early next year.
"The shift to a national bank provides Sovereign with greater flexibility to meet the financial needs of more clients and customer segments, including, in particular, large corporations," the bank said in a statement.
"We are very pleased to have received approval to convert to a national bank," said Sovereign Bank President and CEO and Santander U.S. Country Head Jorge Moran. "This is a significant step in our strategic growth plans and will allow us to provide more and better services to our customers and clients."
