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

FSB to Evaluate Effects of Too-Big-To-Fail Reforms for Systemic Banks

FSB is seeking feedback as part of its evaluation of the effects of the too-big-to-fail reforms for banks.

May 23, 2019 WebPage Regulatory News
News

APRA Releases Minor Changes to Reporting Standards on SA-CCR for Banks

APRA released minor changes to the three reporting standards for the standardized approach for measuring counterparty credit risk exposures (SA-CCR).

May 22, 2019 WebPage Regulatory News
News

APRA on Industry Self-Assessments into Governance and Accountability

APRA released an information paper analyzing the self-assessments performed by 36 of the country’s largest banks, insurers, and superannuation licensees in response to the final report on the Prudential Inquiry into the Commonwealth Bank of Australia (CBA).

May 22, 2019 WebPage Regulatory News
News

PRA Consults on Maintenance of TMTP Under Solvency II

PRA published a consultation paper (CP11/19) that sets out its approach to update supervisory statement (SS6/16) on maintenance of the transitional measure on technical provisions (TMTP) under Solvency II.

May 22, 2019 WebPage Regulatory News
News

APRA Proposes to Amend Guidance on Residential Mortgage Lending

APRA is consulting on revisions to the prudential practice guide APG 223 on residential mortgage lending in Australia.

May 21, 2019 WebPage Regulatory News
News

IASB Proposes Improvements to IFRS 9 and IFRS 16

IASB published the exposure draft ED 2019/2 that proposes amendments to four IFRS standards, including IFRS 9 on Financial Instruments and IFRS 16 on Leases.

May 21, 2019 WebPage Regulatory News
News

Denis Beau of BDF on Supervisory Priorities for Climate-Change Risks

Denis Beau, the First Deputy Governor of BDF, delivered opening remarks at the BCBS-BSCEE-FSI High-level Meeting for Europe on banking supervision.

May 21, 2019 WebPage Regulatory News
News

ISDA CDM to be Deployed for UK Digital Regulatory Reporting Pilot

ISDA announced deployment of the ISDA Common Domain Model (ISDA CDM 2.0) to support the UK FCA, BoE, and participating financial institutions in testing phase two of the Digital Regulatory Reporting pilot for derivatives.

May 21, 2019 WebPage Regulatory News
News

MAS to Consolidate Regulation of Merchant Banks Under Banking Act

MAS published a consultation paper that proposes to consolidate the regulation of merchant banks under the Banking Act and to move merchant banks to a licensing regime under the MAS Act.

May 21, 2019 WebPage Regulatory News
News

ESAs Amend Technical Standards on Mapping of ECAIs Under CRR

ESAs published a second amendment to the implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for credit risk under the Capital Requirements Regulation (CRR).

May 20, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3118