How to become a Specialised Bank in Lithuania

This article looks at the process and requirements of becoming a specialised bank in Lithuania. If you wish to become a specialised bank in Lithuania this article provides into the scope, requirements, and capital requirements to become a specialised bank in Lithuania.

How to become a specialised bank in Lithuania - Introduction

A bank is regarded as a credit institution. Only credit institutions have the exclusive right to accept deposits and other repayable funds from non-professional market participants, while the unauthorised provision of financial services is prohibited. Accordingly, firms seeking to receive deposits from non-professional market participants, must, prior to this, obtain a banking license from the Bank of Lithuania.

Capital requirement to obtain a specialised bank license in Lithuania

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 is the minimum capital requirement of EUR 1 million, while for a traditional bank it is EUR 5 million. A specialised bank is a credit institution, which has the right to receive deposits, lend funds, provide transfer of funds and other usual banking services. 

Bank 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.