Ford To Double Its Chinese Financing.

Nova Scotia bank buys auto finance operation of Travelers Financial Group which is leader in the provision of financial solutions and services to consumers, companies and financial intermediaries in North America.

Travelers group of companies have financial experience in wide range of business sectors. Automotive Finance services are provided by Travelers Leasing Corporation. Equipment Financing is by Travelers Financial Corporation. Travelers Acceptance Corporation deals and specializes in Consumer Finance. All of these services are provided in a non-bank environment which is soon to change.

Bank of Nova Scotia agreed to buy the Canadian auto financing unit of Travelers Financial Group. This will help the bank to expand its lending to consumers with weak credit records. The price of the buy of Travelers Leasing Corp. is not known. With C$255 million ($224 million) in loans under administration and 150 employees the purchase will make Scotia bank the first in Canada to be a "near-prime" lender.

Toronto-Dominion Bank's earlier this year purchases a higher-risk car finance lender VFC Inc. The present acquisition is one more is a number of deals that are being carried out by larger Canadian banks that are flush with cash, but low on expansion opportunities. These banks are increasingly looking at non-traditional areas of lending.

Travelers Financial is based in Vancouver and provides financing through auto dealers to car buyers. Their major clients are those who for any number of reasons have less than perfect credit/who have no credit history.

Scotia bank's acquisition of Travelers Leasing Corporation is only the finding of opportunities by the Bank to drive revenue growth. Scotia bank is Canada's third largest bank by assets. This will buy will definitely expand the banks reach and growth opportunities as well.

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