AUTHORIZATION OF BANK LICENSES

The process of licensing banking institutions is an essential element for achieving the supervisor’s goal of contributing to a sound and stable banking system. The licensing process functions like a barrier to entry for financial institutions that do not present the necessary economic, financial, organizational and governance conditions and that might pose a threat to the banking system. Thus, the licensing of new bank entities is perhaps one of the most important steps for the supervisor, given that an incorrect assessment of the entrance of an institution to the financial market can later result in problems that could even have systemic implications, or fail to generate value in the financial system.