What is a banking license

What is a banking license

Individuals or companies that wish to open a bank and offer financial services are required to obtain a banking license. The process of obtaining a license is often complex therefore it is advised to seek the assistance of a professional consultancy firm.

EFSAG offers many years of experience in obtaining banking licenses from jurisdictions across the globe. For information, please visit our Bank Formation Services page.

Importance of obtaining a banking license

In order to establish a bank and offer financial services, individuals and companies are required to obtain the relevant banking license from their chosen jurisdiction. This obligatory document enables its holders to conduct banking activity as well as startup an offshore bank. The first step in obtaining a license is to determine which jurisdiction you wish to apply for a banking license. This is dependent on the type of bank you wish to establish and what banking services you wish to offer.

Once the jurisdiction has been chosen, individual and companies are required to determine the type of banking license they wish to obtain. There are two main types of licenses:

  • Class A/I: Unrestricted
  • Class B/II: Restricted

After these two factors have been determined, the rest of the process of acquiring a license is relatively simple. Investors are required to submit relevant documentation, along with the minimum capital requirements and submit it to the chosen jurisdictions financial regulatory body. Many jurisdictions have a registration fee as well as a minimum deposit that investors are required to show, before the license can be issued.

To successfully obtain a banking license and become a financial services provider, individuals and companies are advised to seek the advice and guidance of a professional consultancy firm. Through the assistance of expert consultants, you can ensure that the process is completed in a professional and timely manner, as well as in compliance with the jurisdictional regulations.