Banking license
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In most legal jurisdictions, a
- full banking licenses for general banking activities, such as taking deposits from the general public
- international banking licenses (offshore banking licenses), which prohibits any local business activities
- non-banking financial institution (NBFI) is an institution that provides financial services but has to comply with fewer regulations than one with a full banking license.[1]
License issuance
Licenses are typically issued by a national banking regulator to applicant corporations that meet its banking requirements. The requirements may include minimum capital requirements, minimum number of directors, residence of shareholders, spread of shareholdings, disclosure of beneficial shareholders, besides other matters. These requirements may differ between jurisdictions, and may differ depending on the type of license being sought. Some jurisdictions, sometimes called
The granting of the license may involve a long, complex and expensive procedure, which may depend on the type of bank license being sought. There are a number of sectors in which banks may be involved. The general bank license allows a bank to engage in all banking activities, such as retail banking, merchant acquiring, cash management, asset management and trading. An applicant can apply for a limited banking license, such as an offshore banking license.[2]
Banking licenses in the United States
Most state legislatures in the United States ban general corporations from accepting banker's deposits, which covers any service where a general corporation acts as a funds drawee that transfers current funds (i.e., credit payable upon demand) to make payments as a substitute for coins on behalf of an account holder. Historically, in some states, this ban did not extend to a sole proprietor acting as a banker.
One argument for justifying the policy of requiring banking licenses under the U.S. Constitution is that bankers credit sometimes interferes with the regulation of the value of coins, and therefore it is necessary and proper to make laws which regulate banking.
If a bank wishes to perform any substantial
See also
References
- ^ Zantrio. "Banking License". Archived from the original on 24 May 2012. Retrieved 2 February 2012.
- ^ IFLS Corporate Services Ltd. "Offshore Bank Licenses".