{"id":2404,"date":"2017-07-24T12:33:42","date_gmt":"2017-07-24T10:33:42","guid":{"rendered":"https:\/\/www.ecovis.com\/lithuania\/?p=2404"},"modified":"2021-08-30T14:00:25","modified_gmt":"2021-08-30T12:00:25","slug":"european-banking-heaven-lithuania-boosts-efforts-to-improve-licensing-regulations-for-international-finance-institutions","status":"publish","type":"post","link":"https:\/\/www.ecovis.com\/lithuania\/blog\/2017\/07\/24\/european-banking-heaven-lithuania-boosts-efforts-to-improve-licensing-regulations-for-international-finance-institutions\/","title":{"rendered":"European banking heaven \u2013 Lithuania boosts efforts to improve licensing regulations for international finance institutions"},"content":{"rendered":"

Lithuanian authorities making further steps to turn Lithuania into one of the most attractive jurisdictions for banks and finance institutions in the European Union and European Economic Area (EU\/EE). The largest Lithuanian business daily \u201cVerslo \u017einios\u201d investigated recent efforts of Lithuanian authorities on July 27, 2017.<\/p>\n

Lithuanian licensed Banks are allowed to offer all banking services in single EU\/EEA financial market of 30 countries for 500 million wealthy consumers and 20 million businesses, including such big national markets as France and Germany.<\/p>\n

Meanwhile, UK based financial institutions are suffering from Brexit and probably will lose their license passporting rights into continental Europe, Lithuania offers new pan-European banking license just within 6 months licensing period. Having minimum equity capital of EUR 1 Million and licensing time of 6 months Lithuanian \u201clight\u201d banking license of a Specialised Bank has no equivalents within the rest of European jurisdictions.<\/p>\n

\u201cVerslo \u017einios\u201d reports in the article that there are already boost in this area \u2013 only in the first half of the year 2017, 13 operating licenses were granted mainly to foreign financial technology companies, i.e. more than over the last year in total.
\nBig number of new companies are already in the licensing process or waiting for a licence to be issued. In addition, laws are being passed one after the other, which facilitate the conditions for new banks and finance institutions to come to the country. The Ministry of Finance with the Bank of Lithuania (Regulator) have united their efforts in this area.<\/p>\n

\u201cVerslo \u017einios\u201d reports in the article that there are already boost in this area \u2013 only in the first half of the year 2017, 13 operating licenses were granted mainly to foreign financial technology companies, i.e. more than over the last year in total.<\/p><\/blockquote>\n

First of all, according to \u201cVerslo \u017einios\u201d, since the beginning of this year there has been created an opportunity in Lithuania, to set up Specialised Bank \u2013 a unique credit institution with a merely EUR 1 Million equity capital. Secondly, since July 1, 2017 only about 0.1% of the total amount of deposits is enough to cover the banks\u2019 deposit insurance, and up to now the 0.3% rate was valid. Finally, the Bank of Lithuania initiated the procedure to reduce the license fee for banks from EUR 50,000 to 5,000.<\/p>\n

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\u201cThe idea of a Specialised Bank was proposed by the Bank of Lithuania and the relevant laws were drafted, and its purpose was to increase competition in the area of minimum financial services. Recently, we have a strong interest from potential market participants from abroad. In particular, a Specialised Bank license is of interest to foreign investors from Israel, Germany, China, Singapore, the United States, the United Kingdom, Estonia, Latvia, Poland, Sweden and other countries\u201d, \u2013 told M. Jurgilas, member of the Board of the Bank of Lithuania, to \u201cVerslo \u017einios\u201d.<\/p>\n

Lithuanian licensed Specialised Bank provides significant competitive advantage and opens up European financial market at significantly lower incorporation and operational costs.<\/p>\n

Specialised Bank allowed provide all traditional banking services in all (EU\/EEA) member-states such as:<\/p>\n