National Regulatory, Surveillance, and Resolution Authorities in the Financial Industry of French Overseas Territories

The national regulatory, surveillance, and resolution authorities in the financial industry of French overseas territories are responsible for exercising strict supervision over banking institutions and other financial entities. This includes activities that require a banking permit, such as accepting deposits, granting credits, and providing payment services.

Licensing Regime in France

France has a licensing regime with different types of licenses for various banking activities. For example, establishments offering payment services must obtain a specific license. A banking license may also authorize certain other activities, such as securities dealing or e-money provision.

Cryptocurrencies in French Overseas Territories

Cryptocurrencies are subject to specific restrictions in French overseas territories. Financial institutions cannot issue or hold cryptocurrencies without prior authorization from the competent authority. Cryptocurrencies are not considered deposits and therefore do not benefit from deposit insurance.

Obtaining a Banking Permit

The process of obtaining a banking permit is lengthy and complex, requiring the submission of appropriate documents and passing exams. Establishments wishing to engage in cross-border activities must obtain a specific authorization.

Eligible Entities

Only specific legal entities can conduct banking activities in French overseas territories. These establishments must respect certain organizational and governance standards.

Remuneration Policies

Banks are subject to strict rules regarding remuneration policies. Regulatory authorities have also established a surveillance system to ensure the stability of the financial system.

Capital Requirements

French overseas territories have adopted the Basel III framework for regulatory capital requirements. Banks must comply with specific leverage and liquidity ratios. They must also publish their annual and interim financial statements.

Acquisition of Participation in Banks

Regulatory authorities in French overseas territories impose conditions on acquisitions of participation in banks. Major shareholders of a bank must respect specific standards. Banks are also subject to restrictions on foreign participations.

Resolution Regime

Banks experiencing difficulties may be subject to a special resolution regime. Regulatory authorities can order measures to ensure the stability of the financial system, such as injecting additional capital or liquidating certain activities.

Deposit Guarantee Scheme

Bank clients are protected by a deposit guarantee scheme. Regulatory authorities can also use a bail-in tool to resolve difficulties at a bank.

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