How Do You Start a Bank?

To start a bank, choose your partners, pick the location of the bank, raise money, fill out a charter application, and submit the form for review. The amount of money needed is usually in the millions.

  1. Make plans

    Organize your partners, otherwise known as an organizing group. Choose partners who have experience, knowledge and integrity. Write a business plan for state and federal governments to review.

  2. Make appointments

    Allow the organizing group to choose the leaders of the bank, such as the CEO and other executives. Choose the appropriate number of directors, which varies state by state.

  3. Choose the location

    Conduct research regarding the best location of the bank. Take into consideration such factors as market, competition and the economy. When the building is chosen, decide if you want to lease or buy it.

  4. Raise money

    Raise the funds you need to start the bank according to state guidelines. Have the organizers put in at least 10 to 25 percent of the capital, and reach the remaining balance by selling to shareholders. Recruit as many shareholders as possible, 400 to 750 or more, to reach your fundraising goals.

  5. Submit the charter application

    Before sending the application, decide the name of the bank, and ensure that the name is not being used by another bank. Incorporate the name. Set up a pre-filing meeting with the Department of Banking and Finance to make sure that all the necessary information is present before filing the application. Fill out the charter application, and submit it. Wait for a decision within 180 days to see if the charter is accepted.