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Opening a bank in North Cyprus

  • Writer: John Nordmann
    John Nordmann
  • Jun 4
  • 2 min read

Opening a new bank in Northern Cyprus (TRNC)
Opening a new bank in Northern Cyprus (TRNC)

Establishing a bank in the Turkish Republic of Northern Cyprus (TRNC) is governed by the Banking Law and overseen by the Central Bank of the TRNC. The process involves several key requirements and steps:


🏦 Key Requirements to Open a Bank in Northern Cyprus


  1. Legal Structure

    • The bank must be established as a public limited company under the TRNC Companies Law.

    • The company's name must clearly indicate that it will operate as a bank.


  2. Minimum Capital

    • A minimum paid-up capital of 20 million Turkish Lira (TRY) is required (<£400,000).

    • This capital must be free of any collusion, and the Central Bank has the authority to increase this minimum amount. 


  3. Establishment Permit

    • An establishment permit must be obtained from the Central Bank.

    • Approval requires affirmative votes from at least four members of the Central Bank's Executive Board.

    • The permit is valid for three months; if establishment procedures are not completed within this period, the permit becomes invalid.


  4. Operating License

    • Within three months of establishment, an application for an operating license must be submitted to the Central Bank.

    • Requirements include:

      • The capital must be paid in cash.

      • An established organizational structure with qualified personnel and systems.

      • A deposit of 5% of the minimum capital into the Treasury Account at the Central Bank.

    • If the bank does not commence operations within three months of obtaining the license, the license will be cancelled. 


  5. Shareholding and Management

    • Qualified shareholders must meet specific conditions outlined in the Banking Law.

    • Any changes in shareholding, especially those affecting control or significant percentages (20%, 30%, 50%), require prior approval from the Central Bank.

    • Unauthorized share transfers are considered invalid. 


  6. Branches and Representation

    • Opening domestic or international branches, establishing representation offices, or acquiring shares in other companies requires the Central Bank's permission. 


📄 Additional Considerations


  • Compliance: The bank must adhere to all regulations set forth by the Central Bank, including anti-money laundering (AML) and combating the financing of terrorism (CFT) standards.


  • Documentation: Detailed documentation, including business plans, organizational structures, and financial projections, will be required during the application process.


  • Regulatory Oversight: The Central Bank maintains ongoing supervision to ensure compliance with banking laws and regulations.


📞 Contact Information

For detailed guidance and application procedures, contact the Central Bank of the Turkish Republic of Northern Cyprus:


 
 
 

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