Sears Canada Inc. announced Thursday that it will seek approval from its board of directors to apply to establish a federally regulated bank.

“Sears Canada’s financial services have been an integral part of the success of the Company for the past 50 years,” said Mark Cohen, chairman and CEO, Sears Canada Inc. “Establishing a bank will enable Sears to bring enhanced competition to the Canadian financial services marketplace,” Cohen continued. “Our unique strengths and capabilities will provide added choice, value and convenience to consumers while increasing competition.”

“A bank will bring greater regulatory certainty and harmonization across Sears Canada’s national financial services operations” added Bruce Clark, senior vice president, credit and financial services.

The Sears Card represents the single largest credit card franchise in Canada. In 2002, the retailer introduced the Sears MasterCard. Already introduced in Ontario and now being rolled out in British Columbia and Alberta, the Sears MasterCard has been well received by customers.

The company said the establishment of a bank will, among other things, facilitate the offering of a wide variety of innovative MasterCard products to customers.