Why should bank license be given to companies

1.	Why should bank license be given to companies
Answer» ANSWER: banking license is a LEGAL prerequisite for a financial institution that wants to carry on a banking business. Under the laws of most jurisdictions, a business is not PERMITTED to carry words like a bank, insurance, national in their name, UNLESS it holds a corresponding license. Depending to their banking REGULATIONS, jurisdictions may offer different types of banking licenses, such as full banking licenses for general banking activities, such as taking deposits from the general public international banking licenses (offshore banking licenses), which prohibits any local business activities non-banking financial institution (NBFI) is an institution that provides financial services but has to comply with fewer regulations than one with a full banking license.

Answer»

banking license is a LEGAL prerequisite for a financial institution that wants to carry on a banking business. Under the laws of most jurisdictions, a business is not PERMITTED to carry words like a bank, insurance, national in their name, UNLESS it holds a corresponding license. Depending to their banking REGULATIONS, jurisdictions may offer different types of banking licenses, such as

full banking licenses for general banking activities, such as taking deposits from the general public

international banking licenses (offshore banking licenses), which prohibits any local business activities

non-banking financial institution (NBFI) is an institution that provides financial services but has to comply with fewer regulations than one with a full banking license.

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