Specialised bank licence
Enabling you to provide full suite of banking services, including deposit-taking, lending, payment services and issuing electronic money.
In addition to the traditional option of becoming a bank, across Europe, including Lithuania, a more favourable option exists for Lithuanian and foreign startups seeking to begin providing various financial services in the European Economic Area. The key feature of a specialised bank in Lithuania is the minimum capital requirement of EUR 1 million, while for a traditional bank it is EUR 5 million. A specialised bank in Lithuania is a credit institution, which has the right to receive deposits, lend funds, provide transfer of funds and other usual banking services.
If you wish to become a bank in Lithuania and take advantage of the EUR1 million initial capital requirement we can help you apply to the Bank of Lithuania and become a specialised bank. Below you will find key information and requirements to become a specialised bank in Lithuania.
Services a Specialised bank in Lithuania can provide:
A specialised bank can provide the following services:
1. Acceptance of deposits and other repayable funds;
2. Lending (including mortgage loans);
3. Financial leasing;
4. Payment services;
5. Issue and administration of travel vouchers, bills of exchange and other payment instruments.
6. Provision of financial guarantees and financial guarantees;
7. Financial intermediation (agent activities);
8. Money management;
9. Creditworthiness assessment services;
10. Rental of safes;
11. Currency exchange (in cash);
12. Issuance of electronic money.
Specialised bank licencing process
The approach of the Bank of Lithuania to the authorisation process for banks, as well as for other institutions, is, as far as possible, an open one and normally begins well before an application for an authorisation is submitted.
There are 4 stages in the authorisation process:
1. The pre-application stage: we make a formal introduction to the regulator on your behalf.
2. Submission of an application to the Supervision Service of the Bank of Lithuania: the Supervision Service, within 5 business days, accepts the application for consideration.
3. Assessment of an application and attached documents: the Supervision Service, after starting the assessment procedure for the application and submitted documents, transfers all data to the European Central Bank (ECB). Since that moment, the Supervision Service and the ECB together in parallel assess the submitted documents. Where the documents submitted have no deficiencies, the licence is issued within the shortest possible 6 month-term. From experience, however, considering the scope and seriousness of this licence, the Supervision Service usually requests additional information or documents.
4. Issuance of a licence or refusal of authorisation: after the assessment of submitted documents is completed, the Bank of Lithuania formulates its conclusions and submits them to the ECB, which takes the final decision regarding granting of an authorisation.
The key requirement for a Lithuanian bank licence
As part of its assessment of the authorisation application, the regulator will pay particular to the following key areas:
- completeness of the submitted documents;
- compliance with the minimum capital requirement for banks: according to the provisions of Regulation (EU) No 575/2013, the equity capital of a bank must be not less than EUR 5 million, of a small specialist bank – EUR 1 million;
- fitness and suitability of the shareholder(s).
- fitness and suitability of the management team.
- The operating plan must correspond to the possibilities of the bank’s founders (shareholders or holders of voting rights) to implement it, while the prospective bank must, at the time of authorisation, be prepared to provide financial services in a safe and sound manner.
The articles of association, operating plan, management and organisational structure, risk management system, remuneration policy and practice, accounting system, internal control system, technical, information and technological security means, premises, insurance of property of a bank applying for a licence must ensure safe and sound activities of the bank and comply with the relevant legal acts. The bank must also meet other requirements set by the Law on Banks, including the requirements for a legal form, minimum capital, and registered office.
The equity capital of a bank must be not less than EUR 5 million, and for a specialised bank, the amount is EUR 1 million.
The capital of the bank being established may be formed during the examination of the application for a licence.
Why choose Lithuania for a bank licence
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What our clients say
"Buckingham Capital Consulting has been a reliable and trusted partner. They spent time understanding our business, people and processes and worked closely with us throughout the process. They completed our licencing application to a high standard and in a timely and efficient manner. We were delighted with how smooth the entire process was from the application preparation and submission also with the case officer at the FCA. Buckingham Capital Consulting ensured that our licence was obtained in an efficient and smooth manner. The value and expertise they provide became obvious early on in the process. We highly recommend Buckingham Capital Consulting."