Banking is a challenging industry to join, but with some careful planning, one can obtain a banking license and operate your own bank. After finishing all the legal requirements, documentation and procedures, you can start your bank in three to six months. If you are looking to know how to open a bank, the following steps are required –
• Foremost determine the need. The bank can only succeed if there is a need.
• Next, you need to appoint about five to thirteen board members who fulfil the company policies as well as federal regulations. Some extra members should also be appointed to the management level to fill a vacancy in case someone drops out.
• Next, you must have the necessary working capital which can run anywhere from 12 to 20 million dollars.
• Then, you must create a business summary plan which must have three to five-year projection.
• A legal team must be hired next to follow all legal regulations and file applications in the correct manner.
• A risk management infrastructure should be established next to identify, monitor, measure and control all risk involved with the bank and its products.
• Now, hire a public face to show how the bank would be contributing to the society
• Now, apply to all federal and state legal charters and get the necessary approvals.
Get the space, market your bank, establish appropriate relationships and work towards its success.