European Banking Licence 🏦


#277

Congrats & Kudos to the Revolut Team!!!


#278

@AndreasK , Is this the end of the ridiculous yearly limits? I can’t use Revolut until february due to those limits.


#279

With the announcement that “any funds you deposit will be protected up to €100,000 under the European Deposit Insurance Scheme (EDIS)”, this statement implies the removal of the current €33,000 annual activity limit.

However that’s only my interpretation of the new information :slight_smile:


#280

You’re currently not covered and you won’t be until Revolut actually store the money themselves - right now you should treat Revolut as an e-money still. Its still in a ring-fenced account at Lloyd’s. AFAIK.


#281

What about swiss customers ? Will they have the same level of protection ?


#282

As far as I know they should do as Swiss citizens have all the rights that a typical EU citizen does with freedom of movement, so it’d be a bit silly for them to move and suddenly have no deposit protection.


#283

I believe that the deposit protection limits apply to the jurisdiction in which the deposit taker is based, which is the United Kingdom (or possibly later also Lithuania). It’s not based on the postal address of the account holder.


#284

And I believe this is false. I am pretty sure that with an European banking licence ALL citizens of the EU and the EEA are protected.


#285

Deposit protection is not based on citizenship of the deposit maker, but on the location of the deposit taker. For example, an Afghan citizen who is a customer of a UK bank is protected, but a British citizen who is a customer of an Afghan bank is not protected.


#286

but, after the accounts have been migrated to the “bank”, who pays if Revolut goes bankrupt?


#287

For Revolut’s UK-based accounts, this would be the Financial Services Compensation Scheme.


#288

You’re wrong as they don’t have a banking licence here?

You would collect your money from ring-fenced accounts at Lloyd’s or you’d be under the Lithuanian deposit protection scheme, assuming they trial it on you.

Currently you get no deposit protection under Revolut in the event they go under anyways, so it’s literally just the Lithuanian scheme if they trial you on it.


#290

afaik currently our money is secured individually at Lloyds, and protected as for any Lloyds customer.

The jurisdiction is less clear to me after we get moved to Revolut Lithuania :eu: Bank… a branch of Revolut UK :uk: e-money?


#291

If the money is deposited as a current account once Revolut has a bank licence then the deposit guarantee would fall under the licencing financial authority, in this case Lithuania.

If the liability for the individual country was overwhelming and unaffordable (Lithuania’s reserves may be strained in the event of a failure of a bank of Revolut’s size) then I would assume the ECB (European central bank) would step in, as a lender of last resort.


#292

AFAIK the European Central Bank don’t lend. They just stabilise the Euro.


#293

I’m using the term loosely to illustrate that the ECB would intervene to underwrite this EU wide deposit guarantee, in the case of difficulty of an individual European regulatory authority.


#294

I’m really amazed the Lithuanian authorities accepted this responsibility for no evident benefit.


#295

Will be funny to see when many residents of Lithuania will switch to revolut and ditch local banks. :sunglasses:


#296

So will our British IBAN starting with GB… be turned into Lithuanian IBANs LT… or can we keep the British ones?
Thanks!


#297

I believe that’s the reason why we were given personal virtual multicurrency IBANs now, this way things will look unchanged even if we get moved to current accounts in Lithuania.