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Specialised Bank / Bank

Prestigious European banking license opening World’s biggest single banking market of almost 500 million consumers and over 20 million businesses. Equity capital of Specialised Bank – EUR 1 mil., Bank – EUR 5 mil. 

According to the European Regulation (EU) No 575/2013, only the Banks as Credit Institutions have exclusive right to accept deposits and other repayable funds from non-professional market participants and provide full scale banking lending. Banks licensed in one member state of European Union and European Economic Area (EU/EEA) allowed to provide banking services in single European financial market of all 27 member states without additional licensing.

Specialised Bank – unique pan-European banking license

Specialised Bank license with only 1 million EUR capital requirement current is unique in all European Union and European Economic Area EU/EEA. Prestigious pan-European banking license issued by European Central Bank through the Bank of Lithuania (Central Bank and financial regulator) allows provision of all traditional banking services in all common European financial market and has no equivalents in other EU jurisdictions.

Banking services provided by Specialised Bank in European markets:

  • Lending;
  • Payment services;
  • Receipt of deposits;
  • Currency exchange;
  • Issuing of e-money;
  • Issuing guarantees;
  • Fund administration;
  • Financial leasing;
  • Financial intermediation;
  • Creditworthiness assessment services;
  • Safe-deposit box rental;
  • all other traditional banking services

Specialised Bank is only restricted to provide investment advisory services, securities brokerage, investment fund management, and other similar services.

Instant access to a single European banking market

Licensed Specialised Bank/Bank provides significant competitive advantage and opens up European financial market at significantly lower incorporation and operational costs. Lithuania and primarily its capital Vilnius became a new hub for European banking service centers. Favorable regulatory and tax environment, excellent infrastructure and quality pool of relatively cheap labor force makes Vilnius attractive for large international banking institutions and FinTech start-ups. Operational costs became vital in today’s financial business. New FinTech companies challenging traditional banking institutions and cutting margins.

Lithuanian “light” banking license of Specialised Bank is exactly what they need. It opens all single EU/EEA banking market, including large national markets such as French or German at significantly lower costs. Scandinavian rivals SEB, Swedbank, Danske Bank as well as finance industry leader Western Union, the world’s biggest stock exchange operator NASDAQ have service centers and operates their global business from Vilnius. Traditional European finance jurisdictions are losing their importance in our days. UK and London are suffered from BREXIT. UK-based financial institutions looking for new jurisdictions in order to secure their financial licenses in continental Europe. Offshore jurisdictions are no longer considered attractive because of automatic tax information exchange, correspondent bank accounts opening restrictions and limited access to a single European market.

The reasons why Lithuania is one of the top banking jurisdictions in EU/EEA:

  • Fast licensing process.
  • Minimal equity capital of Specialised Bank – EUR 1 000 000, Bank – EUR 5 000 000.
  • The documents can be submitted in English.
  • Direct access to Single Euro Payments Area (SEPA).
  • Deposits up to the amount of EUR 100 000 insured according to EU Deposit Insurance Scheme.
  • Remote client verification.
  • Direct access to all EU/EEA financial markets and Single Euro Payments Area (SEPA).
  • Start-up visa. Special visas for the citizens of non-EU/EEA countries running innovative businesses in Lithuania.

ECOVIS experience

Being part of ECOVIS International consulting group present in more than 80 counties around the world ECOVIS ProventusLaw currently is the most experienced financial licensing advisor in Lithuania. ECOVIS licensed in Lithuania more than 30 finance institutions including big names deVere, Instarem (Nium), Contis Group setting up their European operations. First Lithuanian licensed Specialised Bank Mano Bankas is among ECOVIS clients. ECOVIS ProventusLaw provides all the necessary services for the bank licensing, including preparation of licensing documentation, representation at the Bank of Lithuania (Regulator) during the licensing procedure, company incorporation, office registration, advice on AML, IT, HR, compliance and other matters rising during the incorporation of banking business in Europe. After the licensing procedure completed, ECOVIS offers accounting, reporting, audit, compliance, and legal services for the operational business.

Specialised Bank presentation containing more information can be downloaded here.

More about FinTech companies registration and licensing in Lithuania you can read here.

More about Electronic Money Institution license.

More about Payment Institution license.