Hi! Thanks for the question.
Let us first go to the general process of setting-up a bank. One of my
favorite website, ?Howstuffworks?, provides a good overview of how to
start a bank. The process is within the framework for the state of
Florida but can be applicable to other states as well with only minor
differences.
Here are the general steps you will need to undertake:
a. ?Just as with any business, you'll first have to make some
pre-planning decisions -- like who your partners (called the
organizing group) will be. You'll also have to write a business plan.
All of these things will be taken into consideration when you apply
for a state or federal charter.?
?A charter is an agreement that governs the manner in which the bank
is regulated and operates. It authorizes the organization of the bank
by either the state or federal agency.?
b. ?The organizing group has to identify directors, a chief executive
officer (who usually has to have past experience running a bank) and
other executives.?
?The number of directors you must have varies from state to state. In
Florida, you must have at least five, and there is no maximum number.
These partners have to put up money as an initial offering that shows
their level of commitment and helps get the bank going.?
c. Use market research to get an appropriate location.
d. ?The capital requirements to start a bank often vary greatly from
state to state. In Florida, the suggested capital requirement is $6
million for a bank in a metropolitan area and $4 million for a bank in
a rural area. In other states, such as New York, that amount might be
$10 million or more for metropolitan areas.?
e. Prepare for Charter Application
f. You will generally need to wait 180 days before a decision is made
on your charter application.
?How Banks Work?
http://money.howstuffworks.com/bank.htm/printable
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Since you told me you want to know how to form the bank in California,
here are the pertinent provisions in the California Financial Code as
regards to starting a bank.
ORGANIZATION of BANKS:
?General?
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin&group=00001-01000&file=350-351
?Application?
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin&group=00001-01000&file=360-363
?Authorization to Engage in Banking?
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin&group=00001-01000&file=399-407
?Articles, Bylaws, and Name?
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin&group=00001-01000&file=600-602
?Shares?
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin&group=00001-01000&file=620-622
?Distributions to Shareholders?
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin&group=00001-01000&file=640-646
?Shareholders' Equity?
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin&group=00001-01000&file=660-663
?Capital Notes and Debentures?
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin&group=00001-01000&file=670
?Directors?
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin&group=00001-01000&file=679-688
--------------------------------------
Our next link is particular provisions for Savings Banks.
?LEGAL INVESTMENTS FOR SAVINGS BANKS?
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=fin&group=00001-01000&file=1000-1018
--------------------------------------
Forming an offshore bank meanwhile in the Caribbean is rather similar
as well but a little bit easier than the US laws. I found a link on
how to open an offshore bank in one particular Caribbean location?
Dominica. The details of the process are within this link.
"Offshore Bank Formation - Form an Offshore Bank?
http://www.goccp.com/ENG/offshore-banks/forming_offshore_bank/form_offshore_bank/offshore_bank_formation.htm#require
The next article is a more detailed discussion on the intricacies of
forming offshore banks. The discussions revolve around forming
offshore banks in the Caribbean. The article mentions that the main
benefits of forming an offshore bank are the following:
- Ease of forming the bank
- Capital requirements are not strict
- In some countries you can have a checking account and no signature is required
- ?Savings accounts are an offshore bank's most attractive deposit
service. A tax haven bank is not required to report information on
individual accounts to any governmental agency.?
- ?Most tax havens do not have usury laws, so the offshore bank can
charge higher interest rates than are allowed in most countries.?
- ?A tax haven bank can make investments for its own portfolio,
particularly when the bank's owner wishes to make investments
confidentially and to pay no taxes on the gains.?
- ?An offshore banking license normally allows the licensee to be a
broker, agent, insurer, advisor, manager, guarantor, and perhaps, even
confessor. Each of these services can be contrived to increase deposit
and loan business?
You can view more benefits (as well as the potential problems) of
starting an offshore bank by clicking on the link below.
?How to Operate Your Own Merchant Bank?
http://www.offshore-manual.com/BankOwnersTutorial.html
----------------------------
Finally the next links might be of great interest to you as you go
through the process of starting your bank.
?5 PHASES OF DE NOVO FORMATION?
http://www.denovobanks.com/downloads/5phases.pdf
?The ABCs of Starting a Community Bank?
http://www.startabank.com/key-issues/story.asp?idstory=5
?Key Depository Markets for Banks... A Texas Perspective? (according
to this article, Texas is a very good market for banks)
http://www.startabank.com/key-issues/story.asp?idstory=75
?BANK CHARTER ACTIVITY ? WHERE TO PUT A BANK AND WHEN TO CHARTER IT?
http://www.nubank.com/NBI/bank_charter_activity_07-02-03/bank_charter_activity.pdf
?State Banks vs. National Bank Charters?
http://www.startabank.com/key-issues/story.asp?idstory=79
Search terms used:
Starting a bank
California banking laws
Starting a an offshore bank Caribbean
I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
Thanks for visiting us.
Regards,
Easterangel-ga
Google Answers Researcher |
