Banking Licence Advisory — UK, EU & Global
Obtaining a banking licence is one of the most complex and demanding regulatory undertakings in financial services. We provide specialist advisory support for credit institution and specialised bank licence applications.
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What is a Banking Licence?
A banking licence — formally known as a credit institution authorisation — permits a firm to accept deposits from the public and grant credit for its own account. This is the most heavily regulated activity in financial services, reflecting the systemic importance of deposit-taking and the need to protect depositors.
In the United Kingdom, banking authorisation is a dual-regulated activity overseen by both the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). The PRA leads the authorisation assessment, focusing on the firm's capital adequacy, risk management, business model viability, and the fitness of key individuals. The FCA assesses conduct of business standards and consumer protection.
Across the European Union, banking authorisation is governed by the Capital Requirements Directive (CRD) and Capital Requirements Regulation (CRR). Each member state's national competent authority grants authorisation, with the European Central Bank (ECB) also playing a role for significant institutions within the eurozone.
The capital requirements for banking are substantially higher than for payment institutions or EMIs, typically starting at £1 million in the UK and €5 million in most EU jurisdictions. Lithuania offers a specialist bank licence with a €1 million minimum, providing an accessible entry point for innovative banking propositions.
The application process for a banking licence is the most intensive in financial services, often taking 12 to 36 months. It requires a comprehensive business plan, detailed financial projections over a five-year horizon, a fully articulated risk management framework, capital planning, governance structures, IT infrastructure plans, and recovery and resolution planning.
Where Can You Obtain a Banking Licence?
We support licensing in the following jurisdictions.
PRA + FCA
United Kingdom
Capital: £1M+
Timeline: 12–36 months
Dual regulation, mobilisation stage available
Bank of Lithuania + ECB
Lithuania
Capital: €1M
Timeline: 6–12 months
Specialist bank licence, EU passporting
Central Bank of Ireland + ECB
Ireland
Capital: €5M
Timeline: 12–24 months
EU passporting, common law, English-speaking
DNB + ECB
Netherlands
Capital: €5M
Timeline: 12–24 months
Strong financial infrastructure, EU passporting
MFSA + ECB
Malta
Capital: €5M
Timeline: 12–18 months
EU passporting, English-speaking, fintech-friendly
CSSF + ECB
Luxembourg
Capital: €5M
Timeline: 12–24 months
EU passporting, premier financial centre
BaFin + ECB
Germany
Capital: €5M
Timeline: 12–24 months
EU passporting, largest EU economy
ACPR + ECB
France
Capital: €5M
Timeline: 12–24 months
EU passporting, second-largest EU economy
FINMA
Switzerland
Capital: CHF 10M+
Timeline: 12–24 months
Global private banking hub, non-EU
CBUAE / DFSA / ADGM
United Arab Emirates
Capital: AED 10M+
Timeline: 12–24 months
Middle East gateway, multiple free zones
MAS
Singapore
Capital: SGD 1.5B (full) / SGD 100M (digital)
Timeline: 12–24 months
Asia-Pacific gateway, digital bank licences
HKMA
Hong Kong
Capital: HKD 300M+
Timeline: 12–24 months
Gateway to China, virtual bank licences
United Kingdom — Banking Licence
Overview
UK banking authorisation involves a unique dual-regulatory model with both the PRA and FCA. The UK offers a 'mobilisation stage' allowing newly authorised banks to build out operations under restricted conditions.
Key Requirements
Minimum £1 million initial capital, though most new banks need substantially more. Comprehensive requirements covering capital adequacy, risk management, governance, IT, and resolution planning.
Application Process
12 to 36 months. The process involves pre-application meetings, a formal application, and potentially a mobilisation period of up to 12 months.
Why United Kingdom?
The UK is a leading global banking centre. A PRA/FCA authorised bank benefits from the highest credibility and access to one of the world's deepest financial markets.
Full United Kingdom guide →Lithuania — Banking Licence
Overview
Lithuania offers a specialist bank licence with a €1 million minimum capital requirement — significantly lower than the €5 million typical of most EU member states.
Key Requirements
€1 million initial capital. Full banking regulatory requirements apply including governance, risk management, AML, and capital adequacy.
Application Process
6 to 12 months. The Bank of Lithuania has experience processing specialised bank applications.
Why Lithuania?
Lithuania's €1 million specialist bank licence provides the most capital-efficient route to an EU banking licence with full passporting across all EEA member states.
Full Lithuania guide →Ireland — Banking Licence
Overview
Ireland offers banking authorisation under CRD/CRR with full EU passporting. The Central Bank of Ireland, in conjunction with the ECB for significant institutions, oversees the process.
Key Requirements
€5 million minimum initial capital. Comprehensive governance, risk management, capital planning, recovery and resolution planning, and IT infrastructure requirements.
Application Process
12 to 24 months. The Central Bank conducts a thorough and multi-phased assessment.
Why Ireland?
Ireland offers EU passporting with a common law system, English-speaking environment, and a well-established banking sector. Many international banks use Ireland as their EU hub.
Full Ireland guide →Netherlands — Banking Licence
Overview
De Nederlandsche Bank (DNB), in conjunction with the ECB, oversees banking authorisation in the Netherlands. Amsterdam is a major European financial centre.
Key Requirements
€5 million capital. Comprehensive CRD/CRR requirements. Local substance, governance, and risk management frameworks.
Application Process
12 to 24 months.
Why Netherlands?
The Netherlands offers world-class financial infrastructure, a central European location, and a sophisticated banking ecosystem.
Full Netherlands guide →Malta — Banking Licence
Overview
Malta offers banking authorisation through the MFSA with full EU passporting. Malta has positioned itself as a fintech-friendly jurisdiction.
Key Requirements
€5 million capital. Comprehensive governance, risk management, and AML requirements. Local substance mandatory.
Application Process
12 to 18 months.
Why Malta?
Malta combines EU passporting with English language, competitive costs, and a pragmatic regulatory approach.
Full Malta guide →Luxembourg — Banking Licence
Overview
Luxembourg is one of Europe's most established banking centres. The CSSF, in conjunction with the ECB, oversees banking authorisation.
Key Requirements
€5 million capital. Comprehensive CRD/CRR requirements including governance, capital planning, risk management, and resolution planning.
Application Process
12 to 24 months.
Why Luxembourg?
Luxembourg is a globally recognised banking centre with deep expertise in fund administration, private banking, and international finance.
Full Luxembourg guide →Germany — Banking Licence
Overview
BaFin oversees banking authorisation in Germany, with ECB involvement for significant institutions. Germany is the EU's largest banking market.
Key Requirements
€5 million capital. Comprehensive requirements including governance, risk management, capital adequacy, and IT security.
Application Process
12 to 24 months. BaFin is systematic and thorough.
Why Germany?
Germany provides access to Europe's largest economy with a mature banking infrastructure. Frankfurt is the financial capital of continental Europe.
Full Germany guide →France — Banking Licence
Overview
The ACPR oversees banking authorisation in France. France has a large and sophisticated banking sector and is actively supporting fintech innovation.
Key Requirements
€5 million capital. Comprehensive CRD/CRR requirements. French-language documentation may be required.
Application Process
12 to 24 months.
Why France?
France offers access to a large domestic market and has actively positioned Paris as a post-Brexit financial centre.
Full France guide →Switzerland — Banking Licence
Overview
FINMA regulates banking in Switzerland. Switzerland is one of the world's premier private banking centres and a major hub for international finance.
Key Requirements
Minimum CHF 10 million capital for a full banking licence. Comprehensive governance, risk management, and AML requirements.
Application Process
12 to 24 months.
Why Switzerland?
Switzerland offers a globally recognised banking brand, political stability, strong rule of law, and a leading position in private banking and wealth management.
Full Switzerland guide →United Arab Emirates — Banking Licence
Overview
The UAE offers banking authorisation through the CBUAE for mainland operations, the DFSA in DIFC, and the FSRA in ADGM. Each framework offers different advantages.
Key Requirements
Capital requirements start at AED 10 million and vary by jurisdiction and licence type. Comprehensive governance, risk management, and AML requirements.
Application Process
12 to 24 months depending on the regulatory authority and licence type.
Why United Arab Emirates?
The UAE provides access to the Middle East's largest financial market and serves as a hub for regional and international banking.
Full United Arab Emirates guide →Singapore — Banking Licence
Overview
MAS regulates banking in Singapore and has introduced digital bank licences to encourage innovation. Singapore is Asia's premier banking centre.
Key Requirements
Full banking licence requires SGD 1.5 billion capital. Digital bank licences require SGD 100 million minimum (phased). Comprehensive regulatory requirements.
Application Process
12 to 24 months.
Why Singapore?
Singapore is the leading financial centre in Asia-Pacific with a globally respected regulatory framework and access to fast-growing Asian markets.
Full Singapore guide →Hong Kong — Banking Licence
Overview
The Hong Kong Monetary Authority (HKMA) regulates banking. Hong Kong has introduced virtual bank licences to promote fintech innovation.
Key Requirements
HKD 300 million minimum for licensed banks. Comprehensive governance, capital adequacy, risk management, and AML requirements.
Application Process
12 to 24 months.
Why Hong Kong?
Hong Kong provides access to Chinese and broader Asian markets and remains a major global banking centre.
Full Hong Kong guide →"The banking licence application was the most complex project we've undertaken. Regulatory Counsel's expertise was essential to our success."
CEO, Digital Bank
"Their knowledge of Lithuania's specialist banking regime saved us significant capital and time compared to other EU options."
Founder, Neobank
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Frequently Asked Questions
In the UK, the regulatory minimum is £1 million, but most new banks require significantly more. In most EU jurisdictions, the minimum is €5 million. Lithuania offers a specialist bank licence with a €1 million minimum. The actual capital required will depend on your business model and the regulators' assessment.
Banking authorisation typically takes 12 to 36 months in the UK and 6 to 24 months in the EU. Lithuania is often the fastest EU route at 6 to 12 months.
In the UK, the PRA offers a mobilisation stage for newly authorised banks. During mobilisation, the bank receives its authorisation but operates under restrictions — it can take only limited deposits and must complete specific requirements before moving to full authorisation.
Yes, a banking licence obtained in any EU member state can be passported across all EEA member states. UK banking licences do not passport to the EU post-Brexit.
Lithuania offers a specialist bank licence category with a lower €1 million capital requirement compared to the standard €5 million. It is an excellent entry point for fintech companies and neobanks.
Banks face the most extensive ongoing regulatory requirements in financial services, including capital adequacy reporting, liquidity coverage, risk management frameworks, recovery and resolution planning, regulatory reporting (COREP, FINREP), stress testing, corporate governance, and regular supervisory review (SREP).