Banking Licenses in Ireland: A Guide to Obtaining Authorization

Ireland’s Financial Services and Pensions Ombudsman (FSPO) is responsible for regulating and supervising financial institutions, including banks, to ensure their operations are fair, transparent, and comply with relevant laws and regulations.

Authorization Requirements

To be eligible for a banking license in Ireland, an applicant must meet certain requirements set out in the 1971 Banking Act. These include:

• Receiving money on deposit or as repayable funds from the public
• Granting credits to customers on own account
• Holding oneself out as a banker or carrying on banking business

Application Process

The application process for a banking license in Ireland involves several stages, including:

1. Exploratory Phase

The applicant submits an initial high-level proposal for their application, which is reviewed by the Central Bank of Ireland (CBI).

2. Draft Application Stage

The applicant submits a detailed draft application, which is assessed by the CBI and European Central Bank (ECB) in conjunction.

3. Assessment Phase

The ECB assesses the application, covering areas such as:

• General presentation
• Programme of operations
• Structural organization
• Financial information
• Suitability of shareholders, management board, and supervisory board

Key Considerations

• A banking license permits the holder to engage in a broad range of activities, including:
  • Deposit taking
  • Lending
  • Issuing e-money
  • Payment services
  • Investment services
• The assessment process is iterative, involving multiple rounds of comments and queries from regulators.
• The ECB typically takes 6-12 months to make a decision on an application.
• Banks are subject to ongoing levies and may be required to meet specific conditions if their license is granted.

Third Country Credit Institutions

Credit institutions from non-EEA countries can establish a licensed branch in Ireland to carry out banking business. The CBI will conduct the assessment for these institutions, rather than the ECB.

Other Requirements

Certain financial holding companies and mixed financial holding companies must be authorized under the Capital Requirements Directive (CRD). Non-EEA groups may also be required to establish an intermediate EU parent undertaking.

Passporting

Irish banks can provide services across the EEA on a freedom of services basis or establish a branch on a freedom of establishment basis, subject to completing passporting processes.

For more information on obtaining a banking license in Ireland, please contact the FSPO or consult with a qualified financial professional.