Banco Santander plans to go ahead with a proposal to increase control of its U.S. subprime auto loan unit, after the business passed the Federal Reserve's stress test last month, according to people familiar with the matter.

Banco Santander believes it can benefit from holding a bigger stake in Santander Consumer USA Holdings Inc. as the world's largest economy strengthens, said the people, asking not to be identified because the matter is private. While the Spanish bank is still waiting for regulators to sign off on the transaction, first proposed in 2015, passing the Fed's stress test makes that approval more likely.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.