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» why aren't we seeing more banks open up to print money? I don't know the details but the folks behind Simple tried, really tried to do the complete stack the
by mcny 5y ago
» why aren't we seeing more banks open up to print money?
I don't know the details but the folks behind Simple tried, really tried to do the complete stack themselves. They gave up and first had a "real" bank handle it and eventually folded. There is a lot of red tape around creating a bank and as far as I understand, small local banks exist by being small and local. Like they couldn't operate nationally if they wanted to...
- riffraff 5y agoIn Europe it seems we have them? There are quite a few app-only or direct-banking things that opened up in the last decade (off the top of my head: N26, Monzo, Revolut, Starling, Illimity all have banking licenses). It's true they often rely on some established bank but they haven't folded yet.
- nitrogen 5y agoI've heard similar things from other sources. AIUI it's really hard to get a new banking license, both in terms of what you have to do to prove you are following regulations, and what you have to do to get the license.
- olau 5y agoIn EU, I think one of the requirements is a minimal capital requirement. I can't remember the exact number, but something like 5 million EUR. I don't think most of the small local banks could have started in the current environment, as I gather many of them were founded on a small community pooling their money to help each other and earn some money in return.