Banking License

The RFSA is authorized to license banking institutions in accordance with Próspera Financial Regulation A. In connection with issuing license authorization, among other elements of the evaluation, the RFSA will perform a CAMELS review:

  • Capital Adequacy
  • Asset Quality
  • Management
  • Projected Earnings
  • Liquidity
  • Sensitivity to risk exposure

Banks may switch between licensing Classes at will (assuming they are compliant with new Class requirements) by adding or removing long-term capital reserves with prior notice given to the RFSA.

a. Class A (Lending-only banks) (Part 6, Division 3, Chapter 2)

  • Banks that apply for a Class A license will not be permitted to accept deposits.
  • There are no capital requirements.
  • Banks that apply to a Class A license are expected to raise their funds through equity, borrowing, or bond issuance.

Application Fee: US$ 5,000.00

b. Class B (100% reserve banks) (Part 6, Division 3, Chapter 3)

  • Banks that apply for a Class B license will not be permitted to perform lending operations from funds or the equivalent that originate from deposits made to the bank.
  • There are no capital requirements for banks that apply for a Class B license.
  • All funds originating from deposits to a bank with a Class B license must be held in reserve at a central bank, a commercial bank licensed by a relevant national or subnational authority of a Best Practice Peer Country (as defined in the Próspera Industrial Regulation Statute) in a fully insured account, or in the originating currency government debt.

Application Fee: US$ 7,500.00

c. Class C (Commercial Bank) (Part 6, Division 3, Chapter 4)

  • Banks that apply for a Class C license are permitted to perform lending operations, accept deposits, perform lending operations using funds from deposits, and any other financial activities they deem prudent using depositor funds and the bank’s own long-term capital.
  • Banks that apply for a Class C license must meet a minimum long-term capital requirement of ten million United States dollars (US$10,000,000.00) or its equivalent in Honduran Lempiras or other legal tender, which could be constituted by both equity and bank’s debt with a maturity of up to fifteen (15) years.

Application Fee: US$ 10,000.00

d. Class D (Microfinance Bank) (Part 6, Division 3, Chapter 5)

  • Banks that apply for a Class D license are permitted to perform lending operations, accept deposits, and perform lending operations using funds from deposits, but only from and to local Honduran individuals and entities.
  • Banks that apply for a Class D license have a long-term capital requirement of four hundred thousand United States dollars (US$400,000.00) or its equivalent in Honduran Lempiras, which could be constituted by both equity and bank’s debt with a maturity of up to fifteen (15) years.
  • Lending operations for banks with a Class D license are restricted, in the sense that the sum of loans given to a specific individual or entity cannot exceed twenty five percent (25%) of the bank’s equity.
  • Banks with a Class D license cannot engage in or offer derivative contracts, being derivative contracts those whose value is based on an agreed-upon underlying financial asset, index, or security.

Application Fee: US$ 2,500.00

Banking License Application Forms:

A-2 RFSA Bank License Application

Relevant RFSA Administrative Actions: