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Start Your Own Bank

Start your own bank by opening your own finance company. Offshore Company.com has a service package that enables you to incorporate your own finance company that you can operate as your own bank. Inside this article on starting a bank we explore the legal aspects of being a banking organization through a private finance company that you own.

How Long Does It Take To Start Your Own Bank?

The legal organization of document preparation, recording and filing often takes 3 weeks to start your own bank, which is when your finance company and holding entity are place and ready for transactions. This lead time greatly depends on your level or preparedness for the information requirements.

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What Are The Requirements to Start Your Own Bank?

With respect to individuals as either directors, shareholders, partners, owner of account, trustees or beneficiaries:

  • (A) Full name, date and place of birth, nationality, permanent address, and occupation;
  • (B) Notarised copy of photo identification document (such as a passport or driving licence);
  • (C) Where that individual does not have the above identification document, - Notarised copy of that individual’s full birth certificate, where a notary has verified that copy; and
    • (1) A passport photograph of that individual, with the full name of that individual, the signature of an identifier, and the date of that signature set out at the back of the photograph; and
    • (2) A letter signed by the identifier setting out the identifiers full name, date and place of birth, and permanent address (the identifier can be a friend or work colleague of that individual and has personally known that individual for more than 12 months)

In all cases:

  • (A) Two references for each beneficial owner, preferably one from your bank. We may in limited instances waive this requirement if the introducing agent can verify the owner’s bona fides in writing.
  • (B) Where we are opening a bank account, the two references must be addressed to the Bank
  • (C) Name and address of your Legal Advisor/Attorney/Solicitor

Starting Your Own Bank

In the case of a Chartered Financial Institution in the United States, starting your own bank takes careful attention to the application process and it's expensive. Start up costs alone could be as much as $1 million. You will need a group of experienced bankers that pass an FBI background check and finally pull together about $10 to $20 million in capital to get your bank underway.

The banking industry is regulated heavily by federal and state charter. New charter applications are screened and have to pass a rigorous government scrutinizing. Banking regulators will take an application, every senior officer and the business plan through a strict review in order to detect problems early. Most ill prepared applicants are turned down quickly. Everyone knows that banking is a lucrative and safe investment, security is built into the equation by the industry being so regulated, your investment is watched over for you. Everything is reviewed and tested from financial forecasts, backgrounds of the organizers and directors, fingerprinting, projections, bank policy statements, notarized signatures and a very detailed business plan. Several feet of paperwork is required to start your own bank. Applicants and the plan should be oriented towards the community and bring something of value, other than visions of profit. Starting your own bank should start with who is going to be served by it, you or the community?

That sounds like a lot of work a very expensive process... and it is. What about a finance company that you can form that acts just like a bank? A few weeks, a fraction of the cost and a lot less regulation. Your finance company is not regulated by central banking supervision, but a group of legislative acts on financial transactions and money law.

Governing Financial Legislation

There are several legal acts that govern a finance company that you create to open your own bank. Most banks are chartered institutions that are regulated and governed by Central Bank Regulation, however when you start your own through a finance company, you are governed by legislative Acts.

  • BILLS OF EXCHANGE ACT 1908
  • Cheques Act 1960
  • Companies Act 1993
  • Consumer Guarantees Act 1993
  • Credit Contracts and Consumer Finance Act 2003
  • Electronic Transactions Act 2002
  • Fair Trading Act 1986
  • Financial Transactions Reporting Act 1996
  • Investment Advisers (Disclosure) Act 1996
  • Personal Property Securities Act 1999
  • Proceeds of Crime Act 1991
  • Property Law Act 1952
  • Reserve Bank Act 1989
  • Securities Act 1978
  • Unclaimed Money Act 1969

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