The provisional class 1(2) banking licence is the first to have been issued on the Isle of Man under the Alternative Banking Regime, authorities in the IoM said yesterday.

The bank is not yet able to open its doors to new business but has a 12-month period under the framework to move to an unconditional licence at which point it will be able to open accounts and take deposits.

The Alternative Banking Regime commenced in 2016. The class 1(2) licence precludes retail customers, so CIB Limited will only be able to offer services to qualifying corporate clients and individuals with liquid assets in excess of £500,000. Class 1(2) licence holders are not members of the Isle of Man depositor compensation scheme.

“The provision of core banking services to businesses in the Isle of Man and further afield has been hit hard by some of the traditional banks de-risking and reducing their appetite to provide banking to offshore centres in the past ten years. Coupled with the Isle of Man’s Alternative Banking Regime, this has created a great opportunity for Capital International to build a new digital bank aimed at qualifying corporate clients and high net worth individuals,” Greg Ellison, chief executive of Capital International Group.