What are the capital adequacy requirements for international neobanks

Capital adequacy is basically the amount of "safety money" you need to keep in reserve to ensure you can meet your obligations. For neobanks, these rules are very strict and are usually based on the volume of transactions and the amount of client funds you hold. It is one of the most important things regulators look at during the application process. I have been researching the different ways countries calculate these requirements for digital banks. It varies quite a bit, so you need to be very careful with your financial forecasting. This resource https://cryptolicenses.net/banking-licenses/ is very helpful for understanding the different regulatory standards and what you need to have in place before you start. Make sure your investors are aware that a large portion of their capital will need to sit in a reserve account and cannot be used for operational expenses.