Wal-marts application for a Utah banking licence has ran into opposition. Technically known as an "Industrial Loan Corporation", the institution will process credit card transactions for the retail giant.

Previous attempts to enter banking have also been blocked, including one to buy a Californian ILC in 2002.

In its application Wal-Mart declared that it did not intend entering the retail banking market or open branches outside Utah.

State regulators in Utah and the Federal Deposit Insurance Corporation (FDIC) both have to give approval for the application. Small independent and community banks have made vocal representations to both bodies to try and prevent Wal-Mart setting up the infrastructure.

The danger for the small banks is the retailer leveraging its national muscle to set up a retail banking operation.

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