Memo Bank is a bona fide bank.
Memo Bank was awarded a full banking license from the French (ACPR) and European (ECB) banking authorities.
All the services of a fully-fledged bank
We offer our clients payment methods, current accounts and financing, as banks do
All the assurances that come with being a bona fide bank
A highly regulated business sector
Being a banks means adhering to strict regulatory requirements.
Financial services we can provide
If obtaining a banking license is difficult, it is for good reason. In addition to authorizing the making of payments, a banking license also allows banks to provide two services that have a profound impact on the stability of the financial system and on customer security:
- Holding of deposits, a service that is inherently risky because if a bank pulls up stakes taking all the deposits with them, customers are left in the lurch.
- Extending credit, a service that also carries risk because if the loans issued by a bank are not repaid, the bank must cut off funding to cover its losses and is no longer able to finance the companies that rely on them.
Rules we must respect
As a bank, we cannot simply do whatever we want. We must give serious assurances to regulators on a permanent basis. To maintain the trust that has been placed in us by the banking authorities, we must:
- Remain solvent by managing our risk, limiting our losses, and keeping the books balanced as evidence of our continued viability.
- Maintain liquidity by having cash on hand or being able to convert assets into cash very quickly in the case of hardship.
- Ensure our operations by putting in place proper governance at the company, management, and investor levels.
- Comply with regulations by adhering to requirements regarding IT security, anti-money-laundering measures, efforts to counter the funding of terrorism, etc.
Oversight conducted by the regulatory authorities
For its part, the French banking authorities (ACPR) monitor our activity continually using two separate mechanisms:
- Document-based verification involving detailed reports that must be sent to the ACPR on a regular basis or on-demand as requested.
- On-site inspections involving ACPR agents carrying out audits on our premises to evaluate our stability.
What happens to your money if a bank goes bankrupt
Insurance for bank deposits in France
After the Great Crash of 1929, American authorities understood that a run on the banks threatens the stability of the financial system. This led to the creation of federal deposit insurance to reassure the public that their money is safe, even if the bank where it is deposited fails. The practice has since been widely adopted around the world. In France, the FGDR (Fonds de Garantie des Dépôts et de Résolution) is responsible for reimbursing deposits when necessary.
Your deposits are protected
The funds you deposit with Memo Bank, up to €100,000 per client, are insured by the Fonds de Garantie des Dépôts et de Résolution (FGDR). In exchange, Memo Bank, like all credit institutions licensed as banks by the French banking authorities (ACPR), pays into the FGDR. If ever Memo Bank goes bankrupt, you will recover your money (up to €100,000) within seven days. This guarantee applies not only to Euro-denominated accounts, but to accounts held in foreign currency as well.