ADGM to start issuing digital banking licences

The regulator will accept applications from conventional banks to establish digital banks or branches of digital banks as well as applications from firms with innovative value propositions.

ADGM buiding front. Image used for illustrative purpose.

ADGM buiding front. Image used for illustrative purpose.

Abu Dhabi Global Market/Handout via Thomson Reuters Zawya

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) is now issuing digital banking licences to local and global applicants to establish banks in its International Financial Centre based in Abu Dhabi.

ADGM stated that it will provide an ideal jurisdiction and environment for the digital bank model.

Digital banks in ADGM will add significant value to the SMEs, corporate and wholesale sectors, as well as further, contribute to the development of the overall financial ecosystem, added the FSRA.

Richard Teng, the Chief Executive Officer, FSRA of ADGM, said, Digital banks can address the needs of many segments that are currently underserved by conventional institutions, such as the credit gap faced by small and medium enterprises.”

The regulator said that the digital banking licence will require a base capital requirement of $10 million.

Digital bank accepts deposits and carries on other related financial services activities through online, digital or electronic means rather than through the conventional physical interaction with bank customer services providers.

© 2019 CPI Financial. All rights reserved. Provided by SyndiGate Media Inc. (

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Legal