The Financial Services Regulatory Authority (FSRA) will require digital banks to have a base capital requirement of $10m
The Abu Dhabi Global Market’s Financial Services Regulatory Authority (FSRA) is inviting local and global digital banks to set up shop in its International Financial Centre in Abu Dhabi, the FSRA announced on Wednesday.
In a statement, the FSRA said that moves comes in response to regional and international enquiries from interested parties seeking a “conducive ecosystem that fosters opportunities and market development.”
The FSRA said it believes that the presence of digital banks in ADGM will add “significant value” to the SME, corporate and wholesale sectors and help further development the overall financial ecosystem.
“This announcement and the guidance comes in response to substantive interest from the industry, and demonstrates ADGM’s track record in advancing innovation and supporting growth while managing risks to promote a strong and sustainable financial ecosystem,” said FSRA CEO Richard Teng.
Teng added that “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.”
To apply, the FSRA will require digital banks to have a base capital requirement of $10 million, as well as “robust” governance structures, compliance and risk management policies, IT security measures and certain mandatory senior management appointments.