Market Operations Department
- Implementation of the Eurosystem’s monetary policy
- Management of the Bank of Lithuania’s financial assets
- Provision of banking and investment services
Director of the Market Operations Department – Jonas Kanapeckas
The objective of the Market Operations Department is the effective implementation of the Eurosystem’s monetary policy, management of the Bank of Lithuania’s (LB) financial assets to achieve highest profitability following liquidity and safety requirements, management of the LB’s financial risk and provision of banking and investment services for the LB’s customers.
We implement the Eurosystem’s monetary policy in Lithuania by performing all open market operations and providing standing facilities. Our Department also participates in the Eurosystem’s expanded asset purchase programme, which is usually called quantitative easing. It is dedicated to the euro area economic recovery using unconventional monetary policy instruments.
We are entrusted with the direct management of the LB’s financial assets, which consist of international reserves and investments in euro and are very important for the country’s financial situation. These assets help ensure stability of the financial system of Lithuania and other euro area countries, create conditions for a successful implementation of the monetary policy and ensure financial independence of the LB. These assets also help Lithuania withstand economic and financial shocks easier. The funds earned by investing financial assets are used to cover our organisation’s expenses, whereas a large share of the profit earned is transferred to the state budget. Taking into consideration investment environment and risks, the LB seeks to earn as high return on investment as possible, therefore, we intend to expand investment strategies and enhance risk management.
We make payments of our organisation and its customers (Ministry of Finance of the Republic of Lithuania, foreign central banks, European Commission and other important public authorities) and provide other banking and investment services, including the Eurosystem reserve management services in euro for non-euro area central banks, governments and international organisations.
The Department is comprised of six divisions: Risk Management and Reporting Division, Eurosystem Operations Division, Investment Allocation Division, Trading Division, Financial Operations Processing Division, Market Operations Automation Division.