Featured Product

    ECB Guides to Assess License Applications for Banks and Fintech Firms

    March 23, 2018

    ECB published the guides to assessments of license applications for banks and fintech credit institutions. The publication of these two guides follows the completion of a public consultation. ECB also published comments received, along with a feedback statement explaining how comments received from stakeholders during the public consultation have been taken into account.

    The guide to assessments of license applications for banks explains the general application process and the assessment requirements regarding governance, risk management, and capital, among others. The guide to assessments of license applications for fintech credit institutions explains aspects of the supervisory assessment of license applications that are particularly relevant to the specific nature of banks with fintech business models. It should be read in conjunction with the general ECB guides to the assessment of license applications and fit and proper assessments. The guides offer a practical tool for applicants to increase their understanding of the criteria and to ensure a smooth and effective licensing procedure. A second consultation on an addendum to the guide to assessments of license applications will be conducted at a later stage.

    The national competent authorities act as the first point of contact for receiving license applications, while assessments are conducted jointly with the ECB. ECB makes the final decision on granting, extending, or withdrawing a banking license in the euro area. During the assessment process, supervisors evaluate whether an entity complies with the licensing requirements set out in EU and national law. An entity must meet supervisory capital requirements, have an adequate governance and risk management system in place, and ensure that members of its management body pass a fit and proper assessment. Licensing serves by ensuring that only robust banks can enter the market and perform a wide range of activities. To ensure a level playing field, fintech banks must be held to the same standards as other banks.

     

    Related Links

    Keywords: Europe, EU, Banking, Fintech, License Applications, Responses to Consultation, ECB

    Related Articles
    News

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    July 08, 2020 WebPage Regulatory News
    News

    PRA Statement on Application of Matching Adjustment Amid Crisis

    PRA published a statement to insurers that clarifies the approach to application of the matching adjustment during COVID-19 crisis.

    July 07, 2020 WebPage Regulatory News
    News

    EBA Provides Clarity on Implementation of Certain COVID-19 Policies

    EBA published a report on the implementation of selected COVID-19 policies within the prudential framework for banking sector.

    July 07, 2020 WebPage Regulatory News
    News

    EC Consults on Revision of Network and Information Systems Directive

    EC launched a consultation to revise the network and information systems (NIS) Directive (2016/1148), which was adopted in July 2016 and is the first horizontal internal market instrument aimed at improving the resilience of the EU against cybersecurity risks.

    July 07, 2020 WebPage Regulatory News
    News

    PRA Statement on LIBOR Transition and PRA Resolution-Related Rules

    PRA published a statement that outlines its view on the implications of LIBOR transition for contracts in scope of the “Contractual Recognition of Bail-In” and “Stay in Resolution” parts of the PRA Rulebook.

    July 07, 2020 WebPage Regulatory News
    News

    PRA Issues Updates to Pillar 2A Capital Framework in UK

    PRA published the policy statement PS15/20 to reflect additional resilience associated with higher macro-prudential buffers in a standard risk environment with a reduction in Pillar 2A capital requirements.

    July 06, 2020 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions.

    July 06, 2020 WebPage Regulatory News
    News

    FCA Proposes Guidance to Further Support Consumer Credit Customers

    FCA announced proposals that would provide continued support for certain consumer credit products to users, who are facing a financial impact because of the exceptional circumstances arising from the COVID-19 pandemic.

    July 03, 2020 WebPage Regulatory News
    News

    ACPR Publishes Draft of Taxonomy RAN 1.4.0 for Solvency II Reporting

    ACPR published a draft version of taxonomy RAN 1.4.0_PWD1, along with the related documentation, for Solvency II reporting.

    July 03, 2020 WebPage Regulatory News
    News

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5445