Bank of Lithuania

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Lending and related services 

  • Consumer credit, including credit line
  • Consumer credit secured by mortgage
  • Operation of a peer-to-peer lending platform
  • Operation of a crowdfunding platform

Compare lending and related services providers: Services 

Services/Type of financial market participant Bank* Specialised bank* Consumer credit provider Credit provider Operator of a peer-to-peer lending platform Operator of a crowdfunding platform Investment adviser Brokerage firm (Categories A–C)
Consumer credit services - - - - -
Consumer credit secured by mortgage - - - - -
Operation of a peer-to-peer lending platform - - - - - -
Operation of a crowdfunding platform - - - -
Operations with client funds - - -** -** -

* A bank is a credit institution that provides two core services – accepts deposits or other repayable funds and grants credits. Every business model that does not fall under the traditional concept of a credit institution is evaluated case-by-case, thus an applicant should provide solid justification in order to be granted a banking licence.

**A platform operator, which enters into possession of client funds, is obliged to obtain a payment institution or an electronic money institution licence, or enter in an agreement with an existing payment service provider.


Compare lending and related services providers: Main requirements 

Requirements/Type of financial market participant Bank/Specialised bank  Consumer credit provider  Credit provider Operator of a crowdfunding platform/Operator of a peer-to-peer lending platform Investment adviser Financial brokerage firm (Categories A–C)
Capital (own funds)

Bank – EUR 5,000,000

Specialised bank –
EUR 1,000,000
N/A N/A EUR 40,000 Insurance requirement

From EUR 50,000

to EUR 730,000
Licence fee EUR 4,157 EUR 149 EUR 149 EUR 149 EUR 574 EUR 947
Supervision fee (max)

0.0153% of assets per year

Up to EUR 3,000 0.0125% of issued and not returned credit per year Up to EUR 2,700  Up to EUR 391 per year

0.27% of assets per year

Resolution fee (max) 0.0043% of assets per year N/A N/A N/A N/A 0.075% of income per year (category A only)
Managers and compulsory positions CEO, management board, supervisory board*, internal audit officer, specialised unit for investment services, other key function holders CEO CEO CEO

CEO, management board*, compliance officer, internal audit officer, other key function holders

CEO, management board*, compliance officer, internal audit officer, other key function holders
Level of prudential requirements High (exhaustive list of internal rules, specifications, etc. to be provided to obtain authorisation). Assessment is carried out in cooperation with the ECB N/A, except AML/KYC rules N/A, except AML/KYC rules

Low (simplified template, short list of internal rules and documents to be provided to obtain authorisation)

Low (simplified template, short list of internal rules and documents to be provided to obtain authorisation)

Medium (exhaustive list of internal rules, specifications, etc. to be provided to obtain authorisation)
Level of business conduct requirements

All financial market participants providing lending services are subject to the same EU and national requirements

 
Assessment period Up to 6 months (can be extended to 12 months) Up to 30 business days (can be extended to 60 business days) Same as for consumer credit providers Same as for consumer credit providers Up to 6 months (can be extended) Up to 6 months (can be extended)
How to obtain a licence Click here Click here   Click here and here Click here Click here
Licence valid across the EU - - - -

* The supervisory board (SB) and the management board (MB) must have at least 3 members. The CEO and the members of the MB may not be members of the SB. The CEO may be a member of the MB. More than half of members of the SB are not allowed to enter into an employment relationship with the company. Managers must be of good repute and possess the qualification and experience necessary to properly perform their duties.


Authorisation process

  1. Newcomer (pre-application) stage: pre-application meetings and consultations with Bank of Lithuania experts on whether their future plans are in line with legislative requirements, discussion on the submitted documents and their contents.
  2. Submission of an application: within 5 business days, the Bank of Lithuania checks whether all necessary documents have been submitted and, where no formal deficiencies are identified, accepts the application for consideration.
  3. Assessment of an application: within 1–2 months of the date of receipt of the application, the Bank of Lithuania may ask the applicant to submit additional information or documents. In such case, the time limit for assessment is extended.
  4. Decision regarding the issuance of a licence: after the assessment of the submitted documents, the Bank of Lithuania takes a decision regarding the issuance of a licence.

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Last update: 07-11-2018