How to get UK banking licence?


Procedure to start a bank in the UK?

  • Businesses should make sure their proposals are properly thought out, have through rigorous scrutiny, and have taken into account any inherent hazards.
  • At the time of their authorization, businesses should make sure they are operationally prepared to conduct the regulated activity.
  • The PRA must authorize businesses before they can operate as banks in the UK. Additionally, the FCA must approve the authorization of a new bank.

The PRA has three statutory objectives:

  1. to promote the safety and soundness of these firms; and
  2. to contribute to the securing of an appropriate degree of protection for policyholders (for insurers).
  3. to facilitate effective competition between firms.
  • The FCA’s assessment
  • While our evaluation of a firm’s new bank application is the essential step in the authorization process, there are also additional, optional pre-application phases.
  • In this optional stage, businesses interact with us right away to develop their ideas and get ready to apply to establish a new bank.
  • Three meetings make up this stage: the initial, the feedback, and the technical challenge.
  • submitting a request for us to evaluate, determine whether to authorize them as a new bank, and determine their capital and liquidity needs; the evaluation of a new bank request is led by the PRA and FCA, and at the time firms submit a request for such a review, they should begin building their operational capabilities.
  • After that several meetings with companies in the pre-application stage to explain the authorization process and our expectations, as well as to find out if there are any major obstacles that would prevent an application from being approved.

Who can apply?

  • To be authorized to engage in regulated activities, all firms must satisfy and continue to satisfy the PRA’s and the FCA’s threshold conditions.
  • A bank must have at least €5 million in capital under CRD, or €1 million or £1 million if it can prove it is a Small Specialist Bank (whichever is higher)
  • A building society has fewer alternatives for raising capital than a bank and is more constrained in the type of activity it can perform. It must have capital of at least greater than €1 million or £1 million.

Where to apply?

  • The PRA must authorize businesses before they can operate as banks in the UK. Additionally, the FCA must approve the authorization of a new bank.

What is the cost?

  • at least €5 million in capital under CRD, or €1 million or £1 million if it can prove it is a Small Specialist Bank (whichever is higher).

What is the Validity?

  • Mobilization is a period of up to 12 months during which a newly authorized bank’s ability to accept deposits is constrained.

Document Required

  • Passport/valid photo ID.
  • Bank Statement
  • Personal details
  • Address proof

 

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