- Implements the monetary policy of the Eurosystem
- Manages the financial assets of the Bank of Lithuania
- Provides banking and investment services
Jonas Kanapeckas, Director of Banking Service.
The Banking Service encompasses two Departments – the Operations and Payments Department and the Investment Management Department – and an autonomous Risk Management and Reporting Division.
We implement the monetary policy of the Eurosystem in Lithuania by carrying out open market operations and providing standing facilities. We also ensure participation of the Bank of Lithuania in the Eurosystem’s expanded asset purchase programme, commonly referred to as quantitative easing. It supports economic recovery in the euro area through non-conventional monetary policy measures.
The Banking Service executes payments and settlements initiated by our organisation and its customers (Ministry of Finance of the Republic of Lithuania, financial institutions). The retail payment system CENTROlink aims to increase competition in the payments market: system facilities are available not only to banks, but also credit unions and electronic money institutions, operating both in Lithuania and abroad. Payments made through CENTROlink reach all payment service providers operating in SEPA. We also manage TARGET2-LIETUVOS BANKAS, which is part of TARGET2. The system is used to execute large-scale payments by the Bank of Lithuania and its customers in real time.
We are entrusted with the task of directly managing Bank of Lithuania financial assets (international reserves and investments in euro), important to maintaining the financial health of the country. Financial assets help ensure the stability of the financial system in Lithuania and the euro area, create conditions for smooth monetary policy implementation, and ensure financial independence of the Bank of Lithuania. They also allow the country to properly withstand economic and financial shocks. Profits from investment cover our organisation’s operational costs; the majority of profits earned are transferred to the State Budget. Given the investment climate and potential risks, the Bank of Lithuania aims to earn maximum return on investment, thus we plan to develop investment strategies and strengthen risk management.