One of the most important facts that affect a bank license application is the minimum capital requirements of the licensing body. The minimum capital requirements for offshore bank formation are quite high, however only a portion of the capital will need to be held by the licensing body in order to operate the bank. This does not mean that you can have less than the minimum required capital, it means that you can use a large portion of the minimum required capital for the setup of your bank.
Minimum capital requirements play al large role in the type of bank license you will apply for, as well as the jurisdiction you will choose to form your institution. Minimum capital requirements range from as little as US$50,000 for a Class B restricted license, to over US$5 million for a Class A unrestricted bank license.
In order to start the bank license application process, you will need to prove to the licensing body that you hold the required amount of capital. You do not necessarily need to hold a bank account with the minimum capital requirements in the jurisdiction where you will apply you will only need to prove to the bank licensing body that you have the funds available. Once you have started your bank license application, you will reach a point in the application procedure where you will need to move the minimum required capital into a bank that is licensed by the licensing body in the jurisdiction where you will apply for your license.
Starting Business can provide you with consultancy for the minimum capital requirements for your chosen bank license in the jurisdiction of your choice. We can also help you to create a working capital plan to show how you will use the portion of your capital that is not held by the bank licensing body.
Our team has substantial practical experience in providing capital adequacy consultancy and advice for international banks which were accepted by regulatory authorities in various jurisdictions.
Contact Us to obtain capital adequacy consultancy for your bank formation needs.