- Company Ownership of Banks
- Starting a Bank
A private company can own a bank. Most bank founders are groups, but it’s possible for one wealthy person to start a bank and own 100% of it. People start banks to serve underserved communities or fill gaps left by small bank closures. Research regulations before starting a bank. Follow capital requirements that can range from $12-$20 million. Profits come from making more than spending on expenses.
Banks handle receiving, lending, exchanging, and safeguarding money. Being your own bank means doing these activities through a legal financial entity. First, analyze options, costs, operations, credibility needs, and alternatives. Submit information to your country’s Central Bank for approval. If approved, open a share capital account within a month. Present incorporation certificates and have at least $50 million available.
An independent bank is locally owned, not part of a multi-bank holding company. Its funds stay in its community. Big banks earn billions on loans and services while paying depositors pennies. Savings are FDIC insured up to $250,000 if a bank fails. Private banks focus on high-net worth clients with services like wealth management. Sole proprietorships put ownership under one person rather than a separate legal entity.
The "infinite banking concept" uses specially-designed life insurance policies as banks. Borrow against cash values in the policy for any need. It offers better rates, tax advantages, and security compared to traditional banks. Assets grow even when lent out. Infinite banking started from the idea of being your own banker.