International Corporate Finance

PRE APPLICATION

MEETINGS

HOW TO BECOME A BANK IN THE UK

FULL

AUTHORIZATION

PRE APPLICATION

MEETINGS

(^1) Multiple
APPROVAL WITH
RESTRICTIONS
(to allow time to raise capital
and set up infrastructure)
Time to complete:
Up to 2 Years
£50 million £8 million
9.5% 4.5%
CAPITAL
TO LAUNCH
COMMON EQUITY
TIER 1 CAPITAL
A BANK WITH
£15 MILLION
IN ASSET NEEDS
SUBMIT
APPLICATION
OLD RULES NEW RULES
Time to complete:
6 Months
This has led to a spurt in the the number of digital banks applying for licenses since then.
 IN 2013, UK REGULATORS LOWERED CAPITAL REQUIREMENTS AND CUT DOWN
THE TIME REQUIRED FOR BANKS TO GET LICENSES
Sources: Bank of England, Bloomberg