The European Central Bank (ECB) has published for consultation:

• a draft guide to assessments of licence applications. Since 4 November 2014, the ECB has been exclusively competent to authorise all credit institutions established in the Member States participating in the Single Supervisory Mechanism (SSM). This competence is exercised in close cooperation with the relevant Member State competent authorities. The draft guide applies to licence applications to become a credit institution within the meaning of the Capital Requirements Regulation, including, but not limited to initial authorisations for credit institutions, applications from fintech companies, authorisation in the context of mergers or acquisitions, bridge bank applications and licence extensions. One of the draft guide’s primary objectives is to promote awareness and enhance the transparency of the assessment criteria and processes for the establishment of a credit institution within the SSM, without being exhaustive. Rather than being legally binding, the draft guide is intended to be a practical tool that will be updated regularly to reflect new developments and experience gained in practice; and
• a draft guide to assessments of fintech credit institution licence applications. Fintech is an umbrella term encompassing a wide variety of business models. In line with the ECB’s responsibilities, the draft guide exclusively refers to bank business models in which the production and delivery of banking products and services are based on technology-enabled innovation. The purpose of the draft guide is to enhance transparency for potential fintech bank applicants and increase their understanding of the procedure and criteria applied by the ECB in its assessment of licence applications. The draft guide is technology neutral and seeks to neither support nor discourage the entrance of fintech banks as market participants, compared with banks with other types of business model. The draft guide is not legally binding but is intended to be a practical tool.

The ECB has also published FAQs on the draft guides.

The deadline for comments on both draft guides is 2 November 2017.

View ECB draft guide to assessments of licence application, 21 September 2017

View ECB draft guide to assessment of fintech credit institution licence applications, 21 September 2017

View FAQs document – Public consultation on the guide to assessments of licence applications and the guide to assessments of fintech licence applications, 21 September 2017