BANKING LICENSE. EUROPEAN (EU/EEA) BANK LICENSING. SPECIALISED BANK

Prestigious European EU/EEA banking license opening Worlds biggest financial market of 450 million consumers and over 20 million business. Specialised Bank capital requirement from EUR 1 mill. Full Service Bank capital requirement – EUR 5 mill.

According to the European Regulation (EU) No 575/2013 only the Banks as Credit Institutions have exclusive right to accept deposits and other repayable funds from non-professional market participants and provide full scale banking lending and other financial services. Banks licensed in one European Union (EU) member state allowed offering all banking services in single European financial market of 27 member states.

Specialised Bank – unique pan-European banking license

Specialised Bank license with only 1 million EUR capital requirement current is unique in all European Union and European Economic Area EU/EEA. Prestigious pan-European banking license issued by European Central Bank through the Bank of Lithuania (Central Bank and financial regulator) allows provision of all traditional banking services in all common European financial market and has no equivalents in other EU jurisdictions. 

  • Banking services provided by Specialised Bank:
  • Business and retail lending
  • Payment services
  • Receipt of deposits
  • Currency exchange
  • Issuing of e-money
  • Issuing guarantees
  • Fund administration
  • Financial leasing
  • Financial intermediation
  • Creditworthiness assessment services
  • Safe-deposit box rental
  • all other traditional banking services

Specialised Bank is only restricted to provide investment advisory services, securities brokerage, investment fund management and other similar services.

Instant access to common European banking market at low cost

Licensed Specialised Bank/Bank provides significant competitive advantage and opens up European financial market at significantly lower incorporation and operational costs. Lithuania and primarily its capital Vilnius became a new hub for European banking service centers. Favorable regulatory and tax environment, excellent infrastructure and quality pool of relatively cheap labor force makes Vilnius attractive for large international banking institutions and FinTech start-ups. Operational costs became vital in today’s financial business. New FinTech companies challenging traditional banking institutions and cutting margins. This is the main reason why traditional finance institutions and FinTech start-ups discovering Lithuania. They need jurisdictions opening large single European banking market and allowing create safe, efficient and cost effective banking institution ready to face intense competition in EU/EEA banking market.

Lithuanian “light” banking license of Specialised Bank is exactly what they need. It opens all single EU/EEA banking market, including large national markets such as French or German at significantly lower costs. Scandinavian rivals SEB, Swedbank, Danske Bank as well as finance industry leader Western Union, world’s biggest stock exchange operator NASDAQ have service centres and operates their global business from Vilnius. Traditional European finance jurisdictions are losing their importance in our days. UK and London are suffered from BREXIT. UK based financial institutions looking for new jurisdictions in order to secure their financial licenses in continental Europe. Offshore jurisdictions are no longer considered attractive because of automatic tax information exchange, correspondent bank accounts opening restrictions and limited access to single European market.

The reasons why Lithuania is one of the top banking jurisdictions in EU/EEA:

  • Fast licensing process.
  • Capital requirement for the Specialised Bank from EUR 1 000 000. Bank – EUR 5 000 000.
  • Licensing documentation can be submitted in English.
  • Direct access to Single Euro Payments Area (SEPA).
  • Deposits up to the amount of EUR 100 000 insured according to EU Deposit Insurance Scheme.
  • Remote client verification. Innovative “know your customer” processes for remote verification allows identification of the client without physical presence.
  • Direct access to all EU/EEA banking and financial markets.
  • Start-up visa. Special visas for the citizens of non-EU/EEA countries running innovative businesses in Lithuania.

ECOVIS experience in bank licensing

Being part of ECOVIS International consulting network present in 80 counties around the World ECOVIS ProventusLaw currently considered as the most experienced financial licensing advisor in Lithuania. We licensed more than 35 different financial institutions. ECOVIS banking team members participated in the licensing process of 4 different Specialised Banks and provided legal services to the first Lithuanian licensed Specialised Bank Mano Bank https://mano.bank/ ECOVIS ProventusLaw provides all required services for the bank licensing process, including preparation of legal part of the licensing documentation, preparation of business plan and financial part of the licensing documentation, representation in the Bank of Lithuania (Regulator) during licensing procedure, advice on AML, IT, HR, compliance and other issues rising during the incorporation of banking business in Europe. After the complete of the licensing procedure ECOVIS offers accounting, audit, compliance and legal services for the operational banking business.

More about FinTech licensing

Specialised Bank licensing presentation in English:

Kęstutis Kvainauskas

Lawyer, attorney at law, partner of the law firm.

Contact person