Specialised Banking License in Lithuania

Lithuania and mainly its capital Vilnius became a new flagship of European banking services centres. Favourable regulatory and tax environment, excellent infrastructure, fast Internet, cheap office space and the ability to select high-quality budget personnel make Vilnius attractive for both large international banking institutions and FinTech start-ups.

Moreover, in 2018, the Central Bank of Lithuania won the Central Banking FinTech RegTech Global Awards for its comprehensive approach to regulating the provision of financial services, namely in creating a favourable environment for the development of financial technologies and openness for financial service providers. Are there any other arguments for choosing this jurisdiction for the Fintech project?

In this article we will talk about a unique offer – a specialised banking license in Lithuania with reduced requirements for authorised capital – what is it about? How to get such a banking license? What functionality does this type of license cover?

What is a specialised bank?

Specialised banking license is a concept introduced in Lithuanian legislation from January 1, 2017 as a type of universal banking license. The main difference of this type of license is the requirement for the size of the authorised capital. The standard size of the authorised capital for the European Bank is 5 million Euros, while the Specialised banking license in Lithuania is issued for a company with the authorised company only 1 million Euros. It significantly simplifies the creation of your bank, isn’t it?

Functional authority

The terms of reference that this license gives its owners are very extensive – a company with a specialised banking license has the right to provide the following services: receiving deposits and other repayable funds; lending; financial leasing; payment services; issuance and management of travellers checks, bank checks and other means of payment; providing financial guarantees; financial inter-mediation; money management; credit rating services; safe rental; currency exchange; issue of electronic money.

The only functional difference between a specialised and a universal banking license is the presence of restrictions on providing investment services, management of investment and pension funds, and other similar activities. However, in practice for these purposes an alternative company is registered with the subsequent receipt of a permit for investment activity and asset management of third parties.

Conditions for obtaining a banking license

The times for obtaining a specialised banking license in Lithuania is another incredible advantage of this type of service. With such broad powers, a company licensing takes from 6 to 12 months after providing all of the necessary documentation. Capital requirement, as mentioned above, is only 1 million Euros.

Also, to obtain such a banking license, you will need to confirm the economic presence of your company in Lithuania: you need a real local office, the minimum number of bank management staff must be 10 people, but at least one of them must be a resident of Lithuania and speak Lithuanian.

Brexit and Lithuanian specialised banking license

Brexit made adjustments even to the functioning of well-known FinTech start-ups – the “certification” of companies’ activities became an issue. What does it mean?

International financial companies licensed in the UK are looking for the possibility of licensing their services in one of the EEA countries to provide services to residents of the entire zone. For these purposes a specialised bank in Lithuania is suitable like no other – a wide range of powers, comfortable licensing terms, minimal authorised capital. Who would you think in the forefront received a specialised banking license, rather than the famous financial institution Revolut? It’s worth to consider.

Our team is happy to offer you not only a full package of services for obtaining a specialised banking license in Lithuania, but also assistance in opening corporate and segregated accounts, obtaining membership in SEPA and SWIFT, connecting to Visa/Mastercard, as well as other legal support issues of your project. Get an advice on establishing your Specialised bank in Lithuania today. SBSB International Law Company – your business, our concerns.