European Banking License and Specialised Bank Licensing in the EU/EEA

Secure and prestigious EU/EEA banking license opening the world’s biggest financial market of 450 million consumers and over 20 million businesses. Capital requirement starts from EUR 1 million.

According to the European Regulation (EU) No. 575/2013, only the Banks as Credit Institutions have an exclusive right to accept deposits and other repayable funds from non-professional market participants and provide loans or other financial services. The banks licensed in one European Union (EU) member state are allowed to offer all banking services in a single European financial market consisting of 27 member states.

Bank licensing requirements are very high in most of European jurisdictions. At least 5 million EUR initial capital needs to be formed applying for banking license. While most jurisdictions demand high capital and complex entry requirements, specific Baltic frameworks offer simplified solutions with significantly lower requirements.

1. Lithuanian Specialised Bank

A unique pan-European banking license with a EUR 1 million capital requirement.

Specialised Banks operating in Lithuania currently are unique within the EU/EEA. License issued by the European Central Bank through the Bank of Lithuania allows provision of all traditional banking services across the common market.

Permitted services:

• • 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

Restrictions: Specialised banks may not provide investment advisory, securities brokerage, or investment fund management.

2. Latvian Specialised Credit Institution

A modern digital banking license for innovative financial institutions.

This newly introduced Latvian specialised banking license is designed to attract international firms offering digital-first services. It matches the EUR 1 million initial capital requirement and is tailored for scalable fintech models.

Banking services provided by the Specialised Credit Institution:

• attraction of deposits and other repayable funds
• crediting
• financial leasing
• payment services
• issuance and handling of non-cash means of payment not related to the provision of payment services
• trade on own account or on behalf of a customer in currency or financial instruments
• fiduciary operations (trust)
• provision of investment services and non-core investment services
• issuance of guarantees and other obligation acts which create the obligation to be liable before the creditor for the debt of a third person
• safekeeping of valuables
• advice to customers on financial issues
• provision of such information which is related to the settlement of debt obligations of a customer
• other transactions which are similar in nature to the abovementioned financial services
• issuance of electronic money, including electronic money tokens
• issuance of asset-referenced tokens
• crypto-asset services

Eligibility Criteria (at least one must apply):

• A limited circle of clients, determined according to territorial, employment, or common-interest principles
• Operations are conducted exclusively in a digital format.
• The business model introduces innovative services to the Latvian market.

Access to the single European banking market at a lower cost

The Lithuanian Specialised Bank and Latvian Specialised Credit Institution offer a significant competitive advantage by opening the doors to the single European financial market with substantially lower incorporation and operational costs.

The Baltic States have emerged as the premier hub for European payment and banking services. Specifically, Lithuania remains the leading jurisdiction for Electronic Money Institution (EMI) and Payment Institution (PI) licensing in the EU, boasting the highest number of operational FinTech companies—including global leaders like Revolut Bank holding Lithuanian banking license.

Lithuania and Latvia have become premier destinations for large international banking institutions and FinTech start-ups due to their favourable regulatory frameworks and competitive tax environments. Latvia features 0% corporate income tax rate on all retained or reinvested profits, allowing businesses to defer taxation until profits are distributed to shareholders. By combining world-class digital infrastructure with a highly skilled, cost-efficient labor force, these jurisdictions offer a high-performance home for financial innovation.

The Lithuanian and Latvian “small” banking licenses serve as a powerful key to unlock the single European Union banking market. This allows institutions to “passport” their services across the entire EEA, gaining immediate access to major national markets such as Germany and France without the need for individual licenses in every member state.

Why Lithuania and Latvia are the top specialised bank licensing jurisdictions in the EU:

• Capital requirement for the Specialised Bank or Specialised Credit Institution starts from EUR 1,000,000.
• Licensing documentation can be submitted in English.
• Direct access to the Single Euro Payments Area (SEPA) through the national banks.
• Client deposits are insured according to EU Deposit Insurance Scheme.
• Remote client verification. Innovative “know your customer” processes are allowed for remote client verification allows identification of international client without being physically present

ECOVIS expertise in bank licensing

ECOVIS is a leading global consulting group, powered by over 16,000 professionals operating in more than 90 countries, including every EU member state. Our Lithuanian office is in Vilnius and Latvian office – in Ryga. Our strength lies in the synergy between deep local knowledge and the international expertise of our interdisciplinary network. This allows us to guide financial businesses toward the ideal licensing jurisdiction tailored to their specific goals. ECOVIS is among the most experienced financial licensing advisors in the region, having successfully licensed over 35 different financial institutions. We served as the lead advisor for Mano Bank, the very first Specialised Bank licensed in Lithuania (mano.bank).

We provide a full suite of services to navigate the complexities of the licensing process and beyond:

• Pre-Licensing: Preparation of all legal and financial documentation.
• Regulatory Liaison: Direct representation and communication with the Regulator throughout the application procedure.
• Operational Support: Once the license is granted, we offer ongoing accounting, audit, compliance, and legal services to ensure your banking business remains robust and compliant.

Our recent practice – specialised credit institution licensing in Latvia (confidential client)

More about FinTech licensing

More about ECOVIS experience

Lithuanian Specialised Bank license presentation in English: