Bank of Lithuania

Financial stability

  2. Functions
  3. Financial stability
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We aim to contribute to the stability of Lithuania’s financial system, hence we constantly monitor and assess vulnerabilities in the system as well as take measures to ward them off. In pursuing this goal, we not only carry out a full-fledged analysis of the financial system, but also actively mitigate threats to it, thereby implementing macroprudential policy.

The primary objective of macroprudential policy is to ensure financial stability. We have at our disposal a wide range of macroprudential instruments that help reduce imbalances and their impact on the financial system. Major instruments include the Responsible Lending Regulations, limiting unsustainable household indebtedness, and capital buffers applied to banks, used for enhancing resilience of the financial system.

We prepare and publish Financial Stability Reviews, surveys of financial institutions, enterprises, households and real estate market participants, as well as other information related to financial stability. In conducting various stress tests, we regularly assess the financial system’s resilience to adverse internal and external shocks.

Risks to the financial system

In undertaking their activities, financial institutions face various risks. Learn more about most common risks to financial institutions.

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Structure of the financial system

  31/12/2016
  Number Assets, EUR millions Assets, % Annual change in assets, % Assets as % of GDP
Banks 14 25,763 78.9 10.0 66.7
Banks, excluding foreign bank branches 6 21,439 65.7 8.6 55.5
Foreign bank branches 8 4,324 13.2 17.5 11.2
Credit unions 73 664 2.0 -1.3 1.7
Central Credit Union 1 160 0.5 15.9 0.4
Leasing companies 10 1,489 4.6 7.6 3.9
Insurance market 9 1,399 4.3 22.3 3.6
Life assurance undertakings 5 857 2.6 16.7 2.2
Non-life insurance undertakings 4 542 1.7 32.4 1.4
Capital market participants 84 612 1.9 -4.5 1.6
Financial brokerage firms 7 5 0.0 11.8 0.0
Management companies 10 25 0.1 5.5 0.1
Collective investment undertakings 18 189 0.6 –16.3 0.5
Foreign collective investment undertakings 49 393 1.2 1.7 1.0
Investment holding companies - - - - -
Pension funds 33 2,567 7.9 17.6 6.6
Second pillar pension funds 21 2,487 7.6 17.3 6.4
Third pillar pension funds 12 80 0.2 29.2 0.2
Financial system 224 32,653 100.0 10.4 84.5
Stock exchange capitalisation - 6,790 - 9.2 17.6
Listed shares - 3,496 - 3.2 9.0
Listed debt securities - 3,295 - 16.4 8.5

Sources: NASDAQ OMX Vilnius, Statistics Lithuania and Bank of Lithuania calculations.

Notes: 1) End-of-period data. 2) The totals in the table may not correspond to the sum of components due to rounding. 3) Unconsolidated bank data. 4) To ensure data comparability, annual change in assets is calculated including only those entities that were active during the entire period for which the change is calculated, if such data is available.

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Last update: 20-07-2018