What is bank formation

Bank formation involves the establishment of a bank through obtaining a banking license. Bank formation can only be possible with the acquisition of an offshore bank license and enables you to set up a bank in the jurisdiction of your choice.

The procedure of forming a bank

The bank formation procedure is relatively complex as it involves a number of steps that need to be completed. Individuals and companies are required to meet specific requirements that are outlined by the jurisdiction’s regulatory body. From preparing documentation, to the actual application process for a license, each step of the formation process requires rigorous certification, credentials and paperwork.

The initial formation steps will begin with a preliminary consultation. This involves a complete legal analysis of the jurisdiction where the bank formation will take place, which will provide you with details of the necessary paperwork required for bank formation in your chosen jurisdiction. This step is very important as it outlines the specific legalities of your chosen jurisdiction and enables you to take into account every legal aspect of bank formation within that chosen country.

Following the consultation, a number of specific company documents must be prepared, including an in-depth business plan. This must outline the short and long-term objectives of the bank and provide a detailed framework within which the bank must operate. This procedure can be fairly extensive as it is important to ensure that it is correctly completed.

In addition to all of the above, a thorough compliance risk plan must be in place to support all other documentation. Once the correct documentation has been submitted and the bank formation request has been accepted, you will be able to proceed with the next steps in the formation of your bank. It is advised to seek the assistance of a professional consultancy firm to ensure that you complete the entire procedure of bank formation in compliance with the jurisdictional regulations.