The legislation outlines the conditions under which the Bank may propose to the European Central Bank (ECB) for the withdrawal of a banking licence. Key triggers include failure to commence banking operations within twelve months, cessation of business for over six months, insolvency, or serious regulatory breaches. The proposal must be accompanied by written notification to the licence holder, allowing twenty-one days for representations.

Should the licence be withdrawn, the holder remains accountable for deposit liabilities until fully settled. Furthermore, if the holder operates under another jurisdiction, the Bank must consult with the local authority before proposing licence withdrawal, barring urgent circumstances.