Featured Product

    ECB Consults on Guides to Bank Licensing and Fintech Bank Licensing

    September 21, 2017

    ECB launched a public consultation on two draft guides explaining the process of how entities can become banks and obtain a banking licenses. ECB also published the frequently asked questions (FAQ) on these guides. The consultation ends on November 02, 2017.

    The first document, the draft guide to assessments of license applications, sets out the general process and the requirements for the assessment of such applications. The second document, the draft guide to assessments of fintech credit institution license applications, is directed at entities with a fintech business model, which are considering applying for a banking license. Both guides aim to make the application process more transparent and help applicants in their preparations. The guides are based on policies agreed between ECB and the national competent authorities for interactions with license applicants. Following the public consultation, ECB will publish the comments received, along with a feedback statement. A second consultation on an addendum to the draft guide to assessments of license applications will be conducted at a later stage.

     

    Granting licenses for credit institutions is a core activity of every supervisory authority. The national competent authorities act as the first contact point for receiving licensing applications. However, the assessment of banking license applications is conducted jointly with ECB, which is the competent authority for making the final decision to grant, extend, or withdraw a banking license in the euro area. During the assessment process, supervisors evaluate whether an entity complies with the licensing requirements defined in EU and national law. Among other things, an entity must meet supervisory capital requirements, have an adequate governance and risk management system in place, and ensure that its management passes a fit and proper assessment.

     

    Related Links

    Guide on Bank Licensing (PDF)

    Guide on Fintech Bank Licensing (PDF)

    Frequently Asked Questions (PDF)

    Comment Due Date: November 02, 2017

    Keywords: Europe, EU, Banking, Licensing Applications, Fintech, Guide, FAQ, ECB

    Related Articles
    News

    SEC Adopts Rules and Amendments Under Regulatory Regime for Swaps

    SEC announced that it took a significant step toward establishing the regulatory regime for security-based swap dealers (SBSDs) by adopting a package of rules and rule amendments under Title VII of the Dodd-Frank Act.

    September 19, 2019 WebPage Regulatory News
    News

    APRA Revises Standard on Margin Rules for Uncleared Derivatives

    APRA revised CPS 226, which is the prudential standard on margin and risk mitigation requirements for non-centrally cleared derivatives.

    September 19, 2019 WebPage Regulatory News
    News

    BIS Formalizes Agreement to Set Up Innovation Hub in Hong Kong SAR

    BIS and HKMA signed the Operational Agreement on the BIS Innovation Hub Center in Hong Kong Special Administrative Region (SAR).

    September 18, 2019 WebPage Regulatory News
    News

    PRA Proposal on Probability of Default and LGD Estimation

    PRA proposed, via the consultation paper CP21/19, an approach to implementing EBA’s recent regulatory products relating to Probability of Default (PD) estimation, Loss Given Default (LGD) estimation, and the treatment of defaulted exposures in the internal ratings-based (IRB) approach to credit risk.

    September 18, 2019 WebPage Regulatory News
    News

    PRA Issues Consultation on Prudent Person Principle Under Solvency II

    PRA, via the consultation paper CP22/19, has set out its proposed expectations for investment by firms, in accordance with the Prudent Person Principle (PPP).

    September 18, 2019 WebPage Regulatory News
    News

    CFTC Extends Comment Period for Proposals on Cross-Border Clearing

    CFTC announced that it is extending, until November 18, 2019, the comment period for the proposal for an alternative compliance framework for derivatives clearing organizations (DCOs) that are organized outside of U.S. and that do not pose substantial risk to the U.S. financial system.

    September 18, 2019 WebPage Regulatory News
    News

    BNM Publishes Financial Stability Review for the First Half of 2019

    BNM published Financial Stability Review for the first half of 2019.

    September 18, 2019 WebPage Regulatory News
    News

    APRA Observations from Thematic Review on Recovery Plans of Insurers

    APRA issued a letter to general insurers and life insurers, outlining observations from a recent thematic review on recovery planning by insurers.

    September 18, 2019 WebPage Regulatory News
    News

    FASB Issues Summary of Tentative Board Decisions at September Meeting

    FASB published a summary of the tentative decisions taken at its Board meeting in September 2019.

    September 18, 2019 WebPage Regulatory News
    News

    EIOPA Forms Consultative Expert Group on Digital Ethics in Insurance

    EIOPA established the Consultative Expert Group on Digital Ethics in Insurance to assist EIOPA in the development of digital responsibility principles in insurance.

    September 17, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3848