The Lithuanian banking licence allows institutions to provide full banking services throughout the EU, benefiting from a fast approval process and robust regulatory oversight
As the financial services industry continues to expand, securing the appropriate banking licence is essential for companies wishing to offer trusted and fully regulated banking products across Europe. Lithuania has become one of the premier European jurisdictions for obtaining banking licences, thanks to its transparent regulatory framework, efficient approval process, and full access to the EU single market.
Types of Banking Licences Issued by the Bank of Lithuania
The Bank of Lithuania is the competent authority responsible for granting banking licences, offering two primary types:
- Credit Institution Banking Licence
- Specialised Bank Licence
Both licences permit institutions to operate within Lithuania and throughout the European Union via passporting rights. However, they differ in scope, capital requirements, and operational focus.
Credit Institution Banking Licence
The Credit Institution licence is a full banking licence that authorises entities to carry out a comprehensive range of banking activities, including:
- Deposit-taking
- Lending
- Payment services
- Investment services
- Other traditional banking operations
Holders of this licence are subject to rigorous regulatory standards to maintain financial stability and protect consumers.
Applicants must demonstrate:
- Robust governance structures
- Adequate initial capital, generally starting at €5 million
- Strong risk management frameworks
- Compliance with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) regulations
Regular reporting and audits are mandatory to ensure transparency and operational integrity.
This licence is ideal for companies aiming to establish a full-service bank with a broad product offering, providing maximum credibility and trust with customers and business partners.
Specialised Bank Licence
The Specialised Bank licence is tailored for financial institutions focusing on more limited banking activities. Unlike the full Credit Institution licence, this restricts certain operations, particularly deposit-taking from the general public.
Specialised banks may offer:
- Payment services
- Lending
- Other specific financial operations
Capital requirements are lower, typically starting at €1 million, making this licence more accessible to fintech firms and niche banking providers.
Similar to Credit Institutions, specialised banks must implement effective governance, risk management, and AML/CTF controls. The licensing process is thorough but generally quicker than for full Credit Institutions, making it an attractive option for businesses seeking a regulated bank with a focused business model.
Key Differences and Benefits
Both licences offer EU passporting rights, enabling operations across the European Economic Area (EEA) without separate national authorisations.
- The Credit Institution licence allows full banking activities, including deposit-taking.
- The Specialised Bank licence limits deposit-taking but permits other banking services, offering a flexible and cost-effective entry for emerging banks and fintechs.
Choosing the appropriate licence depends on your company’s business model, capital capacity, and long-term strategy. Full licences require higher capital and longer preparation but offer broader capabilities, whereas specialised licences provide faster market entry and reduced costs with certain operational restrictions.
Why Choose Lithuania?
Lithuania has rapidly become a fintech-friendly jurisdiction known for efficiency, transparency, and innovation. The Bank of Lithuania adopts a pragmatic approach and maintains active engagement with applicants throughout the licensing process, resulting in some of the fastest approvals in the EU.
Additional advantages include:
- Access to the entire EU single market via passporting
- Competitive operational costs compared to larger financial centres
- Strong regulatory framework aligned with EU directives
- Government policies that support fintech growth
- A skilled workforce and a dynamic financial ecosystem
Navigating the banking licence application process can be complex and time-consuming, but with our expert guidance and strong industry connections, we simplify every step. From initial preparation and regulatory compliance to final approval and ongoing supervision, we support you throughout the journey to secure your banking licence efficiently and confidently. Partner with us to access tailored solutions that ensure your institution meets all legal requirements, enabling you to operate seamlessly within competitive financial markets and capitalise on new growth opportunities.
