Obtaining a banking licence on your requirements, a significant investment of time and resources. The licensing process is complex, with considerable costs involved. There are many hurdles to overcome. To fully grasp the intricacies of securing a banking licence, you need an experienced team of professionals with established connections in your jurisdiction of choice for registering a banking institution.
If you are interested in obtaining a banking licence, we advise contacting relevant specialists who possess the requisite knowledge and experience to legally support you through all stages.
When considering jurisdictions, European and American licences enjoy widespread international recognition and prestige. However, registering a banking licence in an island jurisdiction may not best serve your business interests.
Opening a bank in the USA
is a promising yet labor-intensive option. To avoid refusal from the Regulator, contact our company to coordinate registering a bank across various US states, each with distinct laws governing financial institutions.
Another viable location is the UK
To obtain British banking permissions, you must first register an English company. Note that a UK banking licence stipulates specific financial services.
Consider also Singapore's
thriving, reliable and progressive banking jurisdiction. Decisive reasons for those seeking a Singaporean banking licence.
requires registering banking licence with their Financial Services Authority for banking activities.
The Czech Republic
offers unique benefits for obtaining a banking licence. Their Regulator carefully vets new financial market participants to ensure equal conditions. Czech banking enables passporting rights to expand activities abroad. Moreover, Czech banking licences have unlimited validity, enabling stability and reliability.
To determine the most suitable jurisdiction for a banking licence application, consult TK Deal. Our specialists can advise and provide accompanying services.
Obtaining a banking licence requires:
Basic licensing requirements:
Contact TKDeal's seasoned specialists for accompanying services through all licensing stages.
To obtain a bank licence, an entrepreneur must develop a clear and detailed business plan covering
It takes 6 to 36 months to open a banking institution, depending on the selected jurisdiction, completeness of documents, and fulfilling all Regulatory requirements. Some states allow bank operating under a temporary permit until final incorporation.
Obtaining a banking licence demands considerable time and finances. It is vital you adhere to all legal and jurisdictional requirements. For further details, TKDeal specialists are available for personal consultations on securing a bank licence using the website contact information.
Any business interested in commencing banking activities within Malta must formally apply in writing to the appropriate regulatory body to obtain a Maltese banking service provider licence, as stipulated under relevant legislation. Banks in Malta operate under the Banking Act and associated regulations.
Before applying for a Maltese banking licence, note the jurisdiction's key strengths as a financial centre:
Moreover, Malta's banking sector demonstrated resilience through the global financial crisis, signalling the jurisdiction's stability for licensing at domestic and international levels moving forward.
Enacted in 1994, the Maltese Banking Act oversees all aspects of banking, transposing EU directives into local regulation.
MFSA is the regulator for Maltese banks. It licenses, supervises, and oversees banks, e-money institutions, and financial firms. The European Central Bank monitors national regulators, including MFSA, to ensure harmonized EU banking standards. Continuous monitoring and examination of banking institutions are key functions of MFSA, and on-site inspections may be conducted. Prospective licensees must detail legal obligations analysed by MFSA, with breaches incurring fines or licence suspension/revocation.
Entities conducting Maltese banking require an MFSA licence under Section 5. This primarily affects joint ventures, overseas bank branches, and local subsidiaries. Even though local subsidiaries are legally independent, they fall under the scope if they have domestic/foreign credit institution ownership.
1 of 2013
The licensing process is detailed in Banking Rule 1 of 2013 and Section 6. Applicants must write to MFSA regarding proposed operations and structure. Pre-issue, MFSA requires: Memorandum, 3-year financial statements, Business plan, details of directors, managers, major shareholders, and suggested bank managers.
Section 7 prerequisites include: Minimum capital of €5 000 000, appointment of 2 operating individuals, disclosure of the largest shareholders, shareholder suitability checks.
With submissions reviewed, MFSA then may issue an unconditional/conditional licence or reject the application. Rigorous due diligence of leadership and investors remains key.
Obtaining a Maltese banking licence empowers provision of:
Business activities after acquiring a credit institution licence in Malta may, in addition to banking activities, include any or all of the following additional activities, subject to regulatory approval:
A Maltese licence enables branches across the EU and EEA. The bank must notify and gain consent from the MFSA. For non-EEA jurisdictions, MFSA confirmation of reputability and absence of secrecy laws impinging supervision is necessitated. With requirements met, subsidiaries/branches can then open.
Inversely, non-Maltese banks must notify MFSA 2 months pre-opening a representative Maltese office. Activities are restricted to parent organization offerings without financial transaction execution.
The Maltese authorities work closely with the European System of Financial Supervision in accordance with Directive 2013/36/EU. Duties as EBA/ESRB members or adhering to EU banking rules cannot be limited by national powers.
In summary, those seeking Maltese banking licenses or credit institution status must apply in writing to MFSA. For assistance, contact TK Deal’s experts for licensing support and EEA regulatory advice.
Entities seeking to become licensed banks or credit institutions in Malta must submit formal written applications to the MFSA.
For expertise on Maltese banking licenses regulation across the EEA, engage TK Deal. Our specialists advise on licensing requirements, answer all queries, and provide end-to-end support for securing your Maltese authorization.
With in-depth local knowledge, extensive industry connections, and experience assisting international clients with complex licensing projects, rely on TK Deal as your trusted partner in Malta. Contact our experts today to strategize your European banking access.
Operating a financial institution providing financial services in New Zealand necessitates securing a banking licence, which is compulsory under the regulatory framework. In this article, we explore the salient aspects of the financial regulatory landscape in New Zealand and the prerequisites licensees must fulfil.
The Reserve Bank constitutes the principal supervisory body responsible for regulating banks in of New Zealand. The RBNZ purview encompasses pivotal facets of banking operations including registration, prudential supervision and stipulating disclosure requirements for registered banks.
The RBNZ publishes the Banking Supervision Handbook delineating the various policies and guidance documents outlining its regulatory approach. In its capacity as the country’s central bank, the RBNZ’s primary statutory function is to formulate and implement monetary policy aimed at two key macroeconomic goals:
As is common among central banks, the RBNZ also serves as the lender of last resort to financial system participants and retains other functions including foreign exchange operations, currency issuance and advising the Treasury on policy matters.
You are welcome to contact our specialists for more exhaustive information. Use the button below to schedule an advisory session.
New Zealand’s regulatory environment offers favourable conditions for international applicants seeking a local banking licence, namely:
Currently, two types of approvals exist for entities seeking to offer retail deposits within their suite of banking services — registration as a:
Only applicants primarily engaged in borrowing, lending, or provision of ancillary financial services qualify for New Zealand banking registration. During the registration and licensing process, the RBNZ evaluates applicants on both qualitative and quantitative parameters.
Qualitative criteria chiefly pertain to the financial standing of applicants and their ability to prudently manage business risks. For instance, ownership structure, efficacy of systems controlling enterprise risks and extent of loan portfolio diversification.
Quantitative criteria entail maintaining operational prudence and stability post-registration on an ongoing basis.
Hence, quantitative benchmarks constitute registration prerequisites for New Zealand banks aimed at fostering systemic stability by curtailing, although not eliminating, key banking risks.
The key prudential requisites for a New Zealand banking licence elaborate upon some important areas typically subject to registration conditions.
Applicants registered overseas must obtain requisite clearances from their home regulator for conducting banking activities domestically. Furthermore, applicants should meet all prudential norms mandated by their home jurisdiction regulator. Accordingly, registration criteria for New Zealand subsidiary banks chiefly emphasize compliance with their foreign supervisor's regulatory mandates.
When applying for a New Zealand banking licence, the following details must be furnished:
Upon receiving a banking licence application, New Zealand regulators undertake comprehensive review of submitted information, which may require 3 months to 3 years. The presence of any unfavourable criminal history or company track record can warrant rejection.
While evaluating a New Zealand bank registration application, the Reserve Bank examines the suitability of proposed directors, Chief Executive Officer and other key management personnel. For locally incorporated applicants, this policy applies to existing and prospective senior management. For overseas registered applicants as well, assessment encompasses present directors and incumbent/future Chief Executive helming New Zealand operations.
If any proposed appointee already underwent vetting by an overseas regulator, the Reserve Bank generally accepts their assessment as adequate proof of credentials, obviating the need for re-evaluation.
When obtaining a New Zealand banking licence, prescribed corporate governance requirements warrant:
Furthermore, investments in New Zealand’s banking sector fall under the jurisdiction of foreign investment regulations. These necessitate non-resident investors to secure clearance from the Overseas Investment Office before acquiring certain New Zealand assets.
Unlike other peer regulators, the RBNZ does not statutorily protect depositors currently. However, the government approved the introduction of a deposit insurance scheme through amendments in the Deposit Takers Act, targeting launched by 2023. The scheme proposes capping coverage at NZ$ 100,000 per depositor, funded via charges collected from member institutions. It intends to cover specific transaction, savings, and term products offered by registered banks and equivalent NBDT offerings. The scope remains subject to revision by the Treasury Secretary in future.
Use of terminology like “bank”, “banker” or “banking” also stands restricted only to licensed banks without requisite RBNZ approvals. This holds true for international and domestic banks alike.
Apart from a banking licence, registration under the Financial Services Providers Act 2008 remains mandatory. Any additional activities like managing an investment scheme, issuing derivatives or advising retail clients call for supplemental licences under the Financial Markets Conduct Act 2013.
A New Zealand bank registration application requires details such as:
The impending revamp of the Banking Act is expected to require:
Notably, certain financial sector regulations undergo ongoing review and imminent revision. TKDeal's specialists stay abreast of New Zealand's regulatory shifts to aptly guide clients on navigating the licensing and compliance aspects. We would be best positioned to advise on recent and upcoming developments in this jurisdiction.
Therefore, engaging industry experts assumes critical importance when venturing into a new geography to allow factoring in emerging norms and aligning appropriately. TKDeal, with its finger on the pulse of global regulatory transformations, has the credentials to offer timely insights to entities seeking New Zealand banking access.