European Central Bank
Since becoming a member of the Eurosystem on 1 January 1 2015, Lietuvos bankas has actively contributed to the work of the European Central Bank (ECB), pursuing the shared goal of maintaining price stability across the euro area.
The Chair of the Board of Lietuvos bankas is a member of the ECB Governing Council, which sets monetary policy for the euro area, and the ECB General Council, which will remain in place for as long as there are EU Member States that have not adopted the euro.
Lietuvos bankas holds a stake in the ECB’s capital. National central banks of euro area countries contribute 70% of the ECB’s total capital, with non-euro area Member States sharing the remaining 30%.
Eurosystem and European System of Central Banks
Lietuvos bankas is part of the Eurosystem, comprising the ECB and the central banks of euro area countries. We are also a member of the European System of Central Banks (ESCB), which includes the ECB and the central banks of all EU Member States. Our experts actively participate in Eurosystem and ESCB committees, as well as in over 90 working groups, task forces, and research initiatives.
Banking union
Lithuania is a member of the EU’s banking union, an integrated system of bank supervision and resolution. This framework safeguards taxpayers from the cost of failing financial institutions while promoting a stable and resilient banking sector. Membership in the banking union includes all euro area countries and other EU Member States that choose to participate.
Together with the ECB, we supervise the largest banks registered in Lithuania. A member of the Board of Lietuvos bankas participates in the ECB Supervisory Board, which oversees directly supervised banks, as well as in the Single Resolution Board.
The banking union is comprised of three components:
The Single Rulebook establishes consistent regulations for EU financial institutions. It includes directives and regulations like the Capital Requirements Directive and Capital Requirements Regulation (CRD IV and CRR), the Deposit Guarantee Schemes Directive and the Bank Recovery and Resolution Directive, ensuring a harmonised approach to capital requirements and the prevention of bank failures and resolution.
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Upon joining the euro area, Lithuania became part of the Single Supervisory Mechanism (SSM). Since then, the ECB, in partnership with Lietuvos bankas, directly supervises the major banks registered in Lithuania.
A member of the Board of Lietuvos bankas participates in the activities of the Supervisory Board, which deals with a wide range of issues relating to banks directly supervised by the ECB.
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The Single Resolution Mechanism (SRM) ensures orderly resolution of failing banks with minimal economic impact. It comprises the Single Resolution Board, an EU-level authority which is the main decision-making body in the Single Resolution Mechanism, and the Single Resolution Fund, which is a fund established at the supranational level and financed by the banking sector.
In carrying out the centralised bank resolution of countries involved in the Single Supervisory Mechanism, the Single Resolution Board closely cooperates with national resolution authorities (in the case of Lithuania – with Lietuvos bankas). Lietuvos bankas is represented by a member of the Board in the activities of the Single Resolution Board.
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