Can I acquire a bank license

Individuals and companies that want to acquire a banking license must fulfill the necessary criteria as outlined by the financial regulatory body of their chosen jurisdiction. There are a number of requirements, including minimum capital that needs to be satisfied before a banking license can be issued to an applicant.

How to obtain a banking license

The process of obtaining a banking license is usually complex and lengthy as there are numerous requirements that must be met to qualify for a license. These requirements are outlined by the jurisdiction’s appropriate regulatory body, which usually differs from one jurisdiction to another.

The basic requirements for bank formation are outlined below:

  • Capital – investors must demonstrate they have sufficient funds to operate a financial institution
  • Business Plan – providing a basic framework of your bank, its management and the services it will offer
  • Types of Shares – the number shareholders and the type of shares that the institution will offer
  • Due Diligence – the due diligence questionnaire must be completed and handed in to the financial regulator
  • Indemnity Form – bank license applicants must sign the indemnity form so that the bank license issuers can perform backgrounds checks on the individuals

There are a number of legal factors that must be considered before the banking license can be issued. As a result of the various checks and procedures that need to be completed, the process of obtaining a banking license can take up to six months. Therefore it is imperative that investors seek the knowledge and guidance of a professional consultancy firm when acquiring a bank license.