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Licensing Features for Banking Institutions

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Banking license is a special permission to carry out banking activities, certifying the right of a credit institution to conduct the financial transactions specified in it. All banking operations are carried out on basis of a license entered in the register. The document is issued without limitation of its validity period. The license is revoked by the Central Bank of the jurisdiction. Obtaining such a permit is a rather complicated and time-consuming process, so the best solution would be a banking license for sale – a direct saving of time, financial resources and personal efforts.

Banking Licenses Issuance 

The issuance of permits is carried out by the Central Bank of the jurisdiction or the regulator at the local level. To obtain a document, a credit institution must meet a number of requirements. The issuance is made after the registration of a financial organization, entering data about it in the register; payment of 100% of the authorized capital; opening a correspondent account for a credit institution in the main banking institution. After all these conditions are met, the license is issued to the credit institution within three days.

A credit institution holding a general license may:

  • create branches and subsidiaries in the territory of a foreign state;
  • place federal budget funds in bank deposits;
  • to invest in deposits in rubles the means of pension savings and savings for the housing provision of servicemen;
  • participate in a tender for the right to perform the functions of an agent for the placement of government savings bonds and carry out a number of other operations.

The license specifies the financial transactions to which the given credit institution is entitled, as well as the currency in which these transactions can be carried out. Only three types of licenses can be issued to a newly created bank. After several years of successful work and the fulfillment of a number of conditions, a financial institution may receive other types. As a result, all received documents can be replaced by a general one. Banking without a license is a serious offence.

Registration and licensing of banks are the most important functions of banking supervision. They are intended to limit or expand banking activities as required by applicable laws and national regulator regulations.

Top Jurisdictions: Banking License for sale in Switzerland

Financial institutions are regulated by the local Banking Law. Financial Markets Supervisory Authority (FINMA) is the main supervisory authority for the financial sector. The Bank will require at least three (3) Compliance Officers, a CEO who must be a Swiss resident. In order to obtain a banking license in Switzerland, a minimum capital of 10 million Swiss francs (9,142,000 EUR) must be paid in full and remain in the company from the very beginning until the end of operation.

Financial Permission Getting in UK

Two main regulators oversee banking in the UK: Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). Initially, an application for a UK banking license is submitted to the PRA. At the same time, the PRA can approve or reject an application only with the consent of the FCA. The terms for obtaining a British banking license are from 6 months. The country has set an official fee for issuing a banking permit in the amount of 25,000 GBP, as well as a planned capital (capital planning buffer, CPB).