Gibraltar Credit Institutions License

Authorisation and Licensing Process

Any entity wishing to accept deposits or carry out banking activities in Gibraltar must obtain formal authorisation from the GFSC, demonstrating that the firm meets all required capital, governance, and operational standards before commencing business.

Fit and Proper Management

All directors and key personnel must demonstrate relevant professional experience, appropriate qualifications, and a clean financial and criminal background that satisfies the GFSC's strict fit and proper standards for credit institutions.

Robust Risk and Compliance Framework

Licensed credit institutions must establish a fully documented compliance program covering AML, CFT, credit risk management, and internal controls to ensure the institution operates safely within Gibraltar's regulatory standards.

Ongoing Regulatory Reporting

Credit institutions must continuously fulfil their regulatory obligations, including regular capital adequacy reporting and prudential returns to the GFSC, ensuring the institution remains in good standing at all times.

EU-Aligned Minimum Capital Threshold

Gibraltar credit institutions must maintain a minimum initial capital requirement in line with EU banking standards, ensuring the institution has a solid financial foundation before it begins accepting deposits or extending credit to clients.

Risk-Based Capital Calculation

The capital requirement may also be calculated based on a percentage of the institution's risk-weighted assets, ensuring that larger or higher-risk institutions maintain proportionately greater capital reserves to cover potential losses.

Fixed Overheads Requirement

Credit institutions must hold capital equivalent to a portion of their fixed annual overheads, ensuring the institution has sufficient reserves to continue operating safely even during periods of reduced income or business activity.

Ongoing Capital Adequacy Monitoring

Credit institutions must continuously monitor their capital position against all applicable thresholds and immediately notify the GFSC if capital levels fall below the required minimum at any point during operations.