Financial Stability Department
Director of the Financial Stability Department – Jokūbas Markevičius
The objective of the Financial Stability Department is to contribute to ensuring financial stability in Lithuania. The Department formulates the Bank of Lithuania macroprudential policy and applies macroprudential tools to reduce systemic risks to the financial sector. For example, in using macroprudential policy measures, it seeks to ensure sustainable credit growth or prevent household over-indebtedness. On an annual basis, the Department prepares and publishes the Financial Stability Review, which provides an analytical assessment of Lithuania’s financial system. Particular attention is devoted to the situation in the domestic banking system and the financial health of its debtors – households and non-financial institutions. In order to receive valuable information used to carry out financial stability analysis, the Department of Financial Stability conducts surveys of banks, enterprises and households. It is also responsible for the resolution of financial institutions, formulation of the payments market policy and oversight of payment systems.
We formulate, implement and coordinate the Bank of Lithuania macroprudential policy and the macroprudential policy strategy by choosing and implementing the most appropriate measures for reducing systemic risks and strengthening the resilience of the financial sector.
We monitor the development of the financial system and the economic environment, identify systemic risks, assess the sensitivity and resilience of the financial system in terms of adverse changes and shocks within the internal market and the external environment, as well as publish important insights in the annual Financial Stability Review and other publications.
We model the financial system in order to conduct economic research focused on a better understanding of the functioning of the financial system, ensuring sustainable operations and the validity of macroprudential tools applied by the Bank of Lithuania.
We prepare and update resolution plans of financial institutions to be prepared for potential bank resolutions and we also seek to ensure sustainable operation of the financial system even in case of failure of a financial institution.
The Department is comprised of four divisions: Macroprudential Analysis Division, Macroprudential Policy Division, Systemic Risk Modelling Division, Resolution Division.