8. PROCEDURES FOR THE ESTABLISHMENT OF A BANK
The establishment of a bank or opening of a branch by a foreign bank for the purpose of carrying on business within the TRNC is subject to the approval of the Central Bank.
• Foreign real persons or corporate bodies intending to establish a bank shall be; residents of or carrying on business in Turkey, OECD Countries or countries having diplomatic relationship with TRNC and holding the control of a bank directly (at least 51% of the shares) or indirectly. Corporate bodies shall have a valid business permission obtained from the authorities of banking operations in these countries.
• Minimum amount of paid-up capital required is US$ 2,000,000 equivalent New Turkish Lira on establishment and opening of a branch.
• Provisions concerning application and permission for establishment of a bank or opening of a branch are regulated by a notification of the Central Bank.
• Where a bank does not commence business within six months beginning from the date of the establishment authorization, such authorization is deemed to be cancelled.
• Having completed the establishment procedures a bank or a branch receive a banking licence within six months at the latest, unless otherwise decided. The applicant has to certify the deposit of US$ 20,000 equivalent New Turkish Lira at the Central Bank as licence fee during application. The amount to be paid for the renewal of banking licence is US$ 10,000 equivalent New Turkish Lira. This amount has to be deposited every year in January,
otherwise the banking licence shall be deemed invalid.
• Foreign banks operating as a branch are obliged to declare the authorization of one of the branches to represent the Head Office within a month at the latest beginning from the date of opening of the second branch.