A class ‘A’ banking license is a specific banking license that allows financial institutions to operate in a particular jurisdiction with no restrictions on the location of their client base. It is important to establish which type of license your specific banking institution needs to obtain in order to begin the process of acquiring it.
Class A banking license explained
When establishing your own banking institution, it is important to apply and acquire the appropriate banking license which caters to the services you wish to offer your clients. It is important to choose a jurisdiction which will enable you to offer the specific services your banking institution aims to provide.
A class ‘A’ banking license enables the banking body to cater to an unrestricted and undetermined list of clients who are situated offshore to the banking body. The type of license a bank acquires determines the type of clients they will offer their services to. A class ‘A’ banking license will only allow the banking institution to offer their services offshore.
There are certain requirements that the banking body needs to fulfill before they are granted the banking license by the regulatory authority. These requirements include a minimum amount of capital which varies from one jurisdiction to another.