Prudential Supervision Department

The objective of the Prudential Supervision Department is to conduct the supervision of banks, central credit unions, credit unions, insurance undertakings, financial brokerage firms, payment and electronic money institutions, and issuers of asset-referenced tokens, seeking to ensure that market participants have adequate capital, are liquid, properly manage their risks and their governance is efficient. It is important for us to ensure that financial market environment is favourable to its participants and encourages the establishment of new businesses and their sustainable expansion in Lithuania.

Our Department applies the individual prudential supervision model to the activities of supervised market participants, in order to increase soundness and stability of their operations; for this purpose, we conduct regular supervisory inspections and assessments and apply other supervisory instruments. We focus on the assessment of credit, liquidity, market, operational, IT and sustainability risks as well as ensuring cybersecurity. Our Department maintains regular contact and cooperation with the Republic of Lithuania and international institutions on supervisory issues.

To ensure efficient supervision, we cooperate and maintain a constant dialogue with financial market participants based on professionalism, openness and respect.

Our Department represents Lietuvos bankas in the activities of the Single Supervisory Mechanism of the European Union. Together with other supervisory authorities we pursue the objectives related to the implementation of the prudential supervision policy for credit institutions.

The Department is comprised of six divisions: Banking Supervision Division, Insurance Supervision Division, Credit Risk Division, Market and Liquidity Risk Division, Operational and IT Risk Division, Payment and Electronic Money Institution Supervision Division.