The Chair of the Board of the Bank of Lithuania is appointed for a five-year term by the Seimas upon nomination by the President of the Republic of Lithuania. The total number of terms of office is unlimited. The President appoints the Members of the Board to their respective positions for no more than two consecutive terms. The duration of their term of office is six years (prior to April 2011 – nine years).
Currently, the Board comprises Gediminas Šimkus, Chairman of the Board, Asta Kuniyoshi and Raimondas Kuodis, Deputy Chairs of the Board, and Marius Jurgilas, Member of the Board.
In implementing specific objectives, fulfilling their functions and carrying out certain activities, Members of the Board of the Bank of Lithuania, as the organisation’s other employees, follow the principle of independence established in the Republic of Lithuania Law on the Bank of Lithuania. The Law stipulates that the Government of the Republic of Lithuania and state institutions must respect the independence of the Bank of Lithuania and not seek to influence the Bank of Lithuania and its staff in discharge of their duties. They must not take instructions from EU institutions and other national governments.
Functions and responsibilities of the Board
The Seimas of the Republic of Lithuania authorised the Board of the Bank of Lithuania to take all important decisions on the activities of Lithuania’s central bank. The Board performs the following functions:
establishes procedures and principles for the management, use and disposal of the holdings of foreign reserves;
introduces macroprudential policy measures necessary to ensure financial stability in Lithuania;
develops financial market supervision policy;
if the Bank of Lithuania detects any operational shortcomings of the supervised financial market participants or non-compliance with legal acts, applies enforcement measures, gives instructions, imposes obligations and prohibitions, as well as applies other mandatory measures;
when necessary, takes decisions on the resolution of financial sector entities, appeals to court regarding the initiation of bankruptcy proceedings against financial market participants under supervision;
issues licences and other types of authorisation for operating in the financial market, suspends or revokes them when necessary;
takes decisions regarding the issuance of banknotes and coins, their withdrawal from circulation and other issues related to currency in circulation.
All rights and obligations of the Board of the Bank of Lithuania are laid down in the Republic of Lithuania Law on the Bank of Lithuania.
The Board of the Bank of Lithuania meets on an ad hoc basis, but at least once a month.
Areas overseen by the Members of the Board
The Members of the Board of the Bank of Lithuania oversee certain functions and fields of activities of the Bank of Lithuania that are divided into 10 areas: monetary policy, financial stability, economics, supervision, banking, payment systems, research, statistics, cash and organisational management (administration).