Each day, a lot of people directly and indirectly come in contact with the Bank of Lithuania, the central bank of the Republic of Lithuania.
The role of the Bank of Lithuania is very important for the country’s economy and financial system, therefore the Bank of Lithuania is included among the most important state institutions in the Constitution of the Republic of Lithuania.
Objective: The Bank of Lithuania is the central bank of the Republic of Lithuania. Its principal objective is to maintain price stability. In seeking its principal objective, the Bank of Lithuania is independent from the Government of the Republic of Lithuania or other institutions of the state.
With Lithuania entering the euro area, the Bank of Lithuania became part of the Eurosystem and together with the European Central Bank (ECB) and the central banks of the other euro area countries will participate in the establishing and implementation of the euro area’s monetary policy.
Management of financial assets
The purpose of financial assets is to ensure stability of the financial system of Lithuania and of the euro area, provide the conditions for successful implementation of monetary policy, ensure financial independence of the Bank of Lithuania and create the preconditions for the country to more easily withstand economic and financial shocks, and function under other particular circumstances. Financial assets consist of international reserves and investment in euro. Gold, representing part of the international reserves (about 5.8 tons), is stored at the Babk of England in London.
Supervision of banks, insurance companies, credit unions and other financial institutions
The Bank of Lithuania issues permits and licenses for the financial market participants to operate. The goal of licensing is for the country’s financial markets to be operated by reliable, transparent and financially able market participants, while their leaders would be competent and of good repute.
The Republic of Lithuania’s central bank monitors the financial market players and evaluates their compliance with the defined requirements and prudential guidelines, applying sanctions if they violate existing law. Supervision of the financial market participants aims to ensure that they have adequate capital and be liquidatable, that the risk they assume would be properly managed.
The Bank of Lithuania shall ensure that financial market participants provide services honestly, fairly and professionally, taking measures to increase the financial literacy of the public.
Cash issue and withdrawal from circulation
On 1 January 2015 the Bank of Lithuania became part of the Eurosystem and together with the other 18 national central banks within the Eurosystem was granted the right to issue and withdraw from circulation euro banknotes and coins.
The Bank of Lithuania is responsible for meeting the demand for euro banknotes in the country. Banknotes are only printed at printing houses accredited by the European Central Bank and well-known in Europe. Euro coins, by order of the Bank of Lithuania, are minted at the UAB Lithuanian Mint, operating in Vilnius. This Mint also strikes collectors (commemorative) coins issued by the Bank of Lithuania.
The Bank of Lithuania has been given the status of National Analysis Centre and Coin National Analysis Centre in Lithuania. Exercising the powers conferred to it, it performs analysis of the genuineness of euro banknotes and coins. In addition, specialists of the Bank of Lithuania perform expert examinations and genuineness analyses of the acceptability of damaged euro banknotes and coins.
Investigation of disputes between consumers and financial services providers
The Bank of Lithuania impartially investigates disputes between consumers and financial services providers over insurance, lending, payment, investment and other financial services, including disputes relating to accounts, deposits in banks or other credit institutions. Having established that the financial services provider has adopted an unjustified decision, the Bank of Lithuania provides recommendations on how to settle the dispute.
Disputes between consumers and financial services providers are investigated free of charge by the Bank of Lithuania.
Payment and securities settlement systems
Safe transfers of company, institution and public funds from one bank to another, as well as other financial transactions, require a reliable payment system. For payments in euros to run smoothly, the Bank of Lithuania participates in the European payment system TARGET2.
Economic and Financial System Analysis, Forecasts, Statistics
The Bank of Lithuania performs analysis of the country’s economic and financial system, prepares financial stability reviews, foresees the potential threats to Lithuania’s financial system, predicts the possible economic development prospects. This information is regularly published publically.
Bank of Lithuania (Lietuvos bankas)
|Address||Gedimino pr. 6, LT-01103 Vilnius|
|Swift||LIAB LT 2X|
|Code of the Bank of Lithuania||10100|