Who issues a bank license

Individuals and companies that wish to establish a bank or financial institution are required to obtain the necessary banking license. This financial or banking license is issued by the jurisdiction’s financial regulatory body.

Issuing Banking Licenses

The process of obtaining a banking license from the financial regulatory body of a jurisdiction can be a relatively complex and lengthy procedure. Each jurisdiction stipulates a different set of requirements that the bank will be expected to complete before the license is issued. The licensing procedure is also dependent on the nature of the banking license that is applied for.

A bank license is issued by the Central Bank or relevant financial regulatory body, depending on the jurisdiction. The procedure for obtaining the license will depend on the type of bank license that the individual wishes to apply for, as each category of bank license has varying time frames for completion.

Due to the number of different specialties that banks can engage in, there are also package bank licenses available, with the main bank license being a banking license that allows a bank to engage in all of the activities that you would expect a major bank to engage in.

The process of obtaining this license, however, can be fairly long winded and costly. The license application is assessed by the regulatory body in control, which is responsible for administering and issuing the bank license upon acceptance of an application.

It is advised to seek the assistance of a professional consultancy firm to successfully complete the entire bank licensing procedure and establish your financial institution in your chosen jurisdiction. Through the advice and guidance of experienced consultants, you can ensure that you obtain the license in a professional and timely manner.