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    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

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