XII Revocation of the Banking License
  • 1 0000000404811396https://isni.org/isni/0000000404811396International Monetary Fund

Abstract

For a bank, the revocation of its banking license signals the end of its life as a bank. Except for banks whose corporate charter and banking license are combined in one instrument,358 the revocation of the banking license would normally not signal the end of the bank as a corporation; rather, revocation of a bank’s license means revocation of its authority to engage in core banking activities—taking deposits from the public and using them to make loans. As a bank’s activities usually include other activities not requiring a banking license, there is at least a question whether the former bank should not be permitted to continue these other activities as a corporation without a banking license.359