Supervision of banks, credit unions and insurance undertakings using the prudential supervision model
Assessment of risks and business models of supervised financial market participants
Improvement of the regulation of the activities and supervision of supervised financial market participants
Director of the Banking and Insurance Supervision Department – Renata Bagdonienė
The objective of the Banking and Insurance Supervision Department is to conduct the supervision of banks, credit unions and insurance undertakings, seeking to ensure that market participants have adequate capital, are liquid, properly manage their risks and their governance is efficient. It is important for us to ensure that financial market environment is favourable to its participants and encourages the establishment of new businesses and their sustainable expansion in Lithuania.
Our Department applies the individual prudential supervision model to the activities of supervised market participants, in order to increase soundness and stability of their operations; for this purpose, we conduct regular supervisory inspections and assessments and apply other supervisory instruments. We focus on the assessment of credit, liquidity, market, operational, IT and sustainability risks as well as ensuring cybersecurity. Our Department maintains regular contact and cooperation with Republic of Lithuania and international institutions on supervisory issues.
It is important for us to ensure that financial market environment is favourable to its participants and encourages the establishment of new businesses and their sustainable expansion in Lithuania.
To ensure efficient supervision, we cooperate and maintain a constant dialogue with financial market participants based on professionalism, openness and respect.
Our Department represents the Bank of Lithuania in the activities of the Single Supervisory Mechanism of the European Union – together with other supervisory authorities we pursue the objectives raised for the implementation of credit institutions prudential supervision policy.
The Department is comprised of five divisions: Banking Supervision Division, Insurance Supervision Division, Credit Risk Division, Market and Liquidity Risk Division, Operational and IT Risk Division.
Supervision of financial brokerage and management companies, payment and electronic money institutions
Prevention of money laundering and terrorist financing
Supervision of trading in the markets in financial instruments
Director of the Financial Services and Markets Supervision Department – Vaidas Cibas.
The objective of the Financial Services and Markets Supervision Department is to ensure that financial market participants act responsibly and professionally when providing financial services, whereas users of financial services take rational financial decisions.
We supervise financial brokerage and management companies, payment and electronic money institutions so that they operate in a reliable manner – have adequate capital, ensure liquidity and properly manage the risks assumed.
We aim at financial market transparency and fair operation: we monitor and analyse trading in the markets in financial instruments, carry out investigations of potential abuse, monitor transactions concluded at the stock exchange.
We supervise financial market participants, so that they properly implement anti-money laundering and counter-terrorist financing measures, as well as ensure an early identification of deficiencies in their operation.
Our staff prepare thematic reviews of the activities of undertakings providing financial services and trends in the market of financial services and products; we also analyse whether consumers are treated in a fair and professional manner.
Substantial time is devoted to communication with supervised financial market participants and their customers; we plan and conduct supervision of financial service providers on the basis of complaints received from consumers. Our unit is responsible for the oversight of the dissemination of adequate information on financial services – correct information helps people take rational financial decisions.
We also actively contribute to the increase in financial literacy of consumers by participating in financial education initiatives organised by the Bank of Lithuania and other institutions, so that financial behaviour of consumers is more responsible and financial decisions are taken more reasonably.
The Department is comprised of six divisions: Investment Services and Undertakings Supervision Division, Capital Market Supervision Division, Payment Services Supervision Division, Payment and Electronic Money Institution supervision Division, Credit and Insurance Services Supervision Division, AML Division.
Performance of the procedures for the investigation of violations of legal acts regulating the financial market and the application of enforcement measures
Drawing up financial market legislation
Settlement of disputes between consumers and financial market participants
Director of the Legal and Licensing Department – Arūnas Raišutis
The objective of the Legal and Licensing Department is to apply law enforcement, legislative and financial market participant licensing tools, in order to ensure effective financial market supervision that complies with legal regulations and creates conditions for a sustainable development of the financial market, as well as to ensure efficient investigation and prevention of disputes between consumers and financial market participants.
The Department is responsible for the analysis of legislative initiatives concerning activities and supervision of financial market participants and for drawing up of legal acts in this area.
We investigate breaches of legal acts that regulate the financial market and are responsible for the procedures of the application of enforcement measures as well as for ensuring their proportionality and effectiveness.
Our task is to ensure that only transparent and reliable entities operate in the financial market. We do this by assessing the applications for licences that we receive and checking whether companies comply with the requirements set out in legal acts, as well as whether candidates for management positions at financial institutions are of impeccable reputation and meet the qualification and experience requirements laid down in legislation.
We are also responsible for the investigation and prevention of disputes between consumers and financial market participants arising from agreements on loans, deposits, insurance, payments, investment and other financial services. We actively cooperate with other Lithuanian institutions operating in the field of consumer protection. Moreover, the Bank of Lithuania is a member of the European Commission’s out-of-court financial dispute settlement network FIN-NET and maintains close relations with the country’s consumer protection associations.
The Department is comprised of four divisions: Financial Services Dispute Resolution Division, Law Enforcement Division, Legislation Division, Licensing Division.
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 - Marius Ignotas.
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.
Manages the Bank of Lithuania’s retail payment system CENTROlink
Coordinates and administrates the provision of the Eurosystem’s TARGET services (TARGET2, T2S, TIPS) in Lithuania
Conducts oversight of the financial market infrastructure
Promotes innovation and open banking
Director of the Market Infrastructure Department – Evaldas Ruzgys.
The mission of the Market Infrastructure Department is to promote sound and efficient operation of payment and securities settlement systems, contribute to creating an advanced payments market, oversee the financial market infrastructure, formulate payment instruments policy, efficiently administrate and develop the Bank of Lithuania’s retail payment system CENTROlink, as well as coordinate and provide the Eurosystem’s TARGET services to Lithuania’s payment service providers.
In formulating the financial market infrastructure and payment instruments policy, the department develops and submits proposals on financial market infrastructure and payment instruments policies, measures, oversight, payment system administration, development and innovation.
Seeking to ensure smooth functioning of retail payments in the country, the Market Infrastructure Department manages the Bank of Lithuania’s retail payment system CENTROlink and ensures its connection with other financial market infrastructures operating in the Single European Payments Area (SEPA).
The department monitors the readiness of the country’s payment service providers to use the Eurosystem’s TARGET services and administrates the provision of these services.
In conducting oversight of the financial market infrastructure, the Market Infrastructure Department registers the payment and securities settlement systems, manages and publishes relevant data, develops and applies tools that allow monitoring, analysing and assessing financial market infrastructure risks.
Considerable efforts devoted by the staff of the Market Infrastructure Department in coordinating the development of open banking in the country and the emergence of new services provided through the systems administered by the department significantly contribute to innovation in the field of financial transactions, at the same time encouraging the activities of FinTech companies, increasing competition and promoting the emergence of new and attractive payment services.
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.
Analyses monetary policy issues, formulates the positions regarding the Eurosystem monetary policy
Investigates the Lithuanian economy, focusing on the analysis of prices, the real sector, government finance and external accounts of the country
Prepares short and medium-term projections of the key macroeconomic indicators
Develops and applies econometric and other models for projecting macroeconomic indicators and analysing economic policy scenarios
Prepares Lithuanian economic and thematic reviews
Conducts economic research
Draws up and publishes research and discussion papers
Director of the Economics Department – Aurelijus Dabušinskas
The objective of the Economics Department isto research, model and analyse economic processes over the short and long term, to contribute the results obtained to the shaping of the Eurosystem monetary policy and help formulate the position of the Bank of Lithuania on other economic policy issues. Economic research and analysis conducted at the Department allows the Bank of Lithuania to measure the impact of monetary policy on the economy as well as to project the effect of changes in economic conditions on economic development. The Department investigates economic trends in Lithuania and foreign countries, foresees potential economic development prospects and makes macroeconomic projections, which are updated and published on a quarterly basis.
We monitor and analyse the achievement of monetary policy objectives and the impact of monetary policy of the European Central Bank (ECB) in the euro area, provide technical and advisory assistance to the representatives of the Bank of Lithuania in the Monetary Policy Committee of the ESCB and draw up proposals for the position of the Chairman of the Board of the Bank of Lithuania on general monetary policy issues discussed by the Governing Council of the ECB.
We closely monitor and analyse the Lithuania’s macroeconomic processes, make macroeconomic projections for Lithuania and provide assessments of short and medium-term outlook for the Lithuanian economy, and formulate the position of the Bank of Lithuania on economic policy issues within our remit.
We carry out applied macroeconomic research, create and develop the models necessary for making macroeconomic projections and analysing economic scenarios, as well as ensure that modern empirical and economic theory-based quantitative analysis methods and tools are applied in the work of the Department of Economics.
The Department is comprised of three divisions: Applied Macroeconomic Research Division, Macroeconomics and Forecasting Division, Monetary Policy Division.
Director of the Data and Statistics Department – Ramūnas Baravykas
The objective of the Data and Statistics Department is to enable data-based solutions by ensuring that the highest quality data and statistics are available to internal units and the public and thus increase the efficiency and effectiveness of the activities of structural units of the Bank of Lithuania as well as to improve risk management. The Department develops data management policy and implements the tasks necessary to achieve the objectives of the data management strategy and the higher maturity of data management by defining methods, processes, procedures and data architecture. The Department manages data according to the data value chain, i.e. by separating data governance, data and reporting collection, statistical production and methodological support and dissemination of data and statistics. The data and statistical information produced by the Department are used for the production of euro area statistics, monetary policy decisions as well as other functions of the Bank of Lithuania and the European Central Bank. The department closely cooperates with other data and statistics-producing Lithuanian, EU and international institutions and participates in open data initiatives. It coordinates the implementation of the IMF Special Data Dissemination Standard in Lithuania and systematically manages it. Seeking to ease the reporting burden for respondents, the Department maintains and develops securities and loan micro-databases. All statistics compiled are available on the Bank of Lithuania website free of charge.
The Department is comprised of five divisions: Data Governance Division, Data and Reporting Collection Division, Macroeconomic Statistics Division, Monetary and Financial Statistics Division, Data and Statistics Dissemination Division.
Issues into circulation euro banknotes and coins, withdraws worn euro from circulation
Exchanges litas into euro and worn or damaged euro into euro fit for circulation free of charge
Organises issuance of Lithuanian commemorative and collector euro coins
Sells numismatic items online
Deivis Stankevičius, Director of the Cash Department
Our primary task is to supply banks operating in the country with euro cash, which, in turn, provide it to residents and corporates. Euro banknotes and coins unfit for circulation are returned to the Bank of Lithuania and destroyed. Stocks of euro banknotes and coins, ensuring smooth circulation of cash, are stored in the Bank of Lithuania vaults in Vilnius and Kaunas. To replenish the stocks, we receive shipments of new euro banknotes from different euro area countries, where they are printed. Under the direction of the European Central Bank, national central banks reallocate their banknote holdings, so that there is no shortage or surplus of them in any country. Hence we sometimes send money shipments to other euro area central banks. New euro coins are struck at the Lithuanian Mint, located in Vilnius.
Being part of the euro area and using the single European currency – the euro, Lithuania, like the other members, has the right to issue collector and commemorative euro coins. Our department is responsible for their creation, mintage and issuance into circulation. We analyse proposals from state authorities, education institutions, public organisations, and private persons concerning themes for coins, and submit them to the Coin Creation Commission for consideration. The Commission confers with renowned artists and historians. The Board of the Bank of Lithuania has the final say on what coins are to be issued, approving the plan for the issue of numismatic items.
Our department is in charge of two cash offices in Vilnius and Kaunas, where residents may exchange euro banknotes into larger or smaller denominations in limited amounts free of charge, purchase (exchange) uncirculated circulation and commemorative euro coins with the Lithuanian national side at nominal value, and submit euro and litas banknotes for evaluation. The cash offices exchange litas into euro and worn or damaged euro into currency fit for circulation free of charge.
Seeking to manage cash more effectively, we implemented a cash supply system reform, allowing private cash handlers to be more involved in the process and improve the overall quality of services. For customer convenience, we opened an e-shop where one can purchase collector and commemorative coins issued by the Bank of Lithuania as well as other numismatic items.
Director of the IT Department – Levaldas Zigmantas
The objective of the IT Department is technological leadership in pursuing the objectives of the Bank of Lithuania.
The IT Department:
- Plans and coordinates IT architecture and IS security management, analyses IT security incidents, carries out IT system security checks as well as keeps in contact and coordinates actions with the European Central Bank and supervised financial market participants in relation to these issues
- Ensures continuous development and maintenance of data collection, management, storage, integration and payment systems. Moreover, the Department is in charge of the lifecycle of these systems, aiming to increase the value created for data and financial market participants and to enable timely data and technology-based solutions
- Takes care of the IT infrastructure, determines the directions of IT infrastructure development and provides services to the employees of the Bank of Lithuania
- Determines the direction of IT management, constantly improves the level of IT management maturity at the Bank of Lithuania and implements IT development projects using the best global IT management practices
The Department is comprised of seven divisions: Architecture and Information System Security Division, Data Platform Division, Information System Support Division, Infrastructure Division, Payment Systems Division, Management Division, Operational Information Systems Division.
Protection of classified information, implementation of ethical standards, implementation of corruption prevention measures, implementation of information, cybersecurity strategies
Cooperation with the European Central Bank (ECB), other European Union (EU) and international institutions and national central banks of other countries, policy analysis of the EU and international financial institutions
Organisation of preparations for meetings of the ECB, other EU and international institutions, coordination of international events of the Bank of Lithuania
Formation of legal position on matters falling within the competence of the Bank of Lithuania, representation of the Bank of Lithuania in court and other institutions
Selection, development and improvement of human capital, payroll, careers and talent management
Expeditious provision of relevant information to the public and the media, publication of electronic publications on finance and the economy
Raising public awareness on the history and present of money
Director of the Strategy and Governance Department - Ilona Daugėlaitė.
The objective of the Strategy and Governance Department is to strengthen the Bank’s governance by merging the operational management functions that are relevant to the Bank of Lithuania (LB) as a whole, and by strengthening their integration with each other, to seek to reduce administrative activities in other divisions of the LB. The Department will organise and coordinate the preparation of strategic plans of the LB and will seek to ensure that financial, material, intellectual and information sources are optimally managed and used in their implementation.
We develop money laundering and terrorist financing policies, organise the business risk process, and we are responsible for ensuring business continuity. We also ensure the implementation of information and cybersecurity strategies. In order to gain the trust of the public and employees of the LB, we ensure the creation and implementation of an anti-corruption environment.
We develop international relations of the LB and ensure proper participation in the decision-making processes of the EU and international financial institutions. We also carry out policy analysis of the EU and international financial institutions, as well as assess the international economic environment and economic developments in countries relevant to Lithuania. Seeking duly representation of Lithuania’s interests in the IMF, the Republic of Lithuania became part of the Nordic-Baltic Constituency. In preparing and coordinating the Constituency’s positions as well as positions on relevant EU issues, the LB is represented by the International Relations Division.
We make sure that the Board of the Bank of Lithuania is well prepared for international events and meetings.
Moreover, we prepare and assess draft legal acts. Our activities ensure that legal acts comply with legislative norms and the requirements of the EU and Republic of Lithuania legal acts. Our lawyers are in charge of drawing up and assessing draft agreements to be signed by the LB as well as LB responses to letters from legal and natural persons. We aim to ensure that these documents are legally irreproachable and in line with regulatory requirements in order to remove any inconsistencies or other factors that could pose legal risk to the LB. In addition, we draft procedural documents and act on behalf of the LB in court, pre-trail dispute-settling bodies and other institutions.
We aim to ensure that our organisation recruits highly qualified, competent and motivated specialists, able to take informed decisions and efficiently achieve its objectives in a constantly changing environment. For this reason, we constantly improve systems for personnel selection, training and development, payroll and motivation, career and talent management, as well as other systems.
We are responsible for raising awareness of the general public, financial market participants, the academia and Lithuanian and foreign media on the role and functions of the LB, the national central bank. One of our key communication outlets is the Bank of Lithuania website (www.lb.lt), which provides latest and relevant information in both Lithuanian and English. We post latest news on our social media platforms, present them through media outlets, by sending our press releases to journalists and organising press conferences. Live events organised by the LB can be broadcasted online. Experts at our organisation publish their insights on economic development and latest projections on the Internet, in the media, broadcast on the radio and TV, as well as participate in public discussions. We organise various seminars for residents and give presentations on how to manage personal finances. We reply to enquiries received from the general public by email or phone.
The Money Museum, located in the heart of Vilnius, introduces visitors to the history of Lithuanian and world money, and presents the single European currency – the euro. At different locations in the country, we present to the public new collector and commemorative coins issued by the LB. Every few years we organise open-day events at the LB, garnering great public interest, during which we speak about the activities of the central bank, hold quizzes about money and showcase armoured vehicles for cash transportation.
The Department is comprised of seven divisions: autonomous Compliance and Risk Management Division, International Relations Division, Secretariat, Legal Division, Human Capital Division, Communications Division, Money Museum.
Drawing up and control of the budget of the Bank of Lithuania, preparation of financial statements
Protection of the employees and valuables of the Bank of Lithuania, safe transportation of valuables
Handling of procurement procedures
Maintenance of buildings, premises, working conditions of the employees of the Bank of Lithuania
Director of the Corporate Services Department – Ugnė Šaltenytė.
The objective of the Corporate Services Department is to ensure sustainable, efficient, effective and safe use of the resources of the Bank of Lithuania (LB) by managing the administrative, economic and financial activity of the LB. The Department also aims to ensure the provision and quality of services related to finance, security, premises, public procurement, document and information management, editing, translation and publishing.
We are responsible for a transparent and targeted planning of financial resources of the LB. We provide reliable financial analysis which helps to make management decisions that increase the efficiency of the LB and are focused on a sustainable financial situation of the LB in the long term. We formulate and implement the financial accounting policy of the Bank of Lithuania and prepare financial statements in a timely manner.
We establish the procedures for access to the territory and premises of the LB by employees and guests of the LB, and monitor compliance with the procedure. We also set the procedures for allowing vehicles of the LB and its employees, guests, collection vehicles of commercial banks, as well as vehicles of other institutions or persons to enter and leave the premises of the LB and monitor compliance with the said procedure. We are obliged to protect the employees of the LB, its valuables and other assets, to safely transport valuables, if necessary, as well as arrange and protect the valuables transported with vehicles that do not belong to our organisation, employing police forces.
We organise and implement the process of public procurement at the LB in such a way that would ensure timely and transparent purchase of quality goods, services and works and rational use of funds allocated for such purposes. We track the changes of provisions of the Republic of Lithuania Law on Public Procurement, the Republic of Lithuania Law on Public Procurement in the Fields of Defence and Security, and other legal acts regulating the process of public procurement as well as analyse the requirements of these legal acts and initiate the required amendments to internal legal acts.
We supervise and take care of the buildings of the LB, the working environment of employees, the implementation of civil protection, occupational safety and fire safety requirements, and we apply sustainability measures in the provision of services.
We accept inquiries, requests and complaints from residents, organisations and companies, provide the answers for them, administer the circulation of LB documents, keep their archives and record the working time of the employees.
We edit legislation, documents, publications and information to be published prepared by the LB, perform translations into other languages and publishing activity.
The Department is comprised of six divisions: Finance Division, Security Division, Public Procurement Division, Premises Division, Document and Information Management Division, Publishing and Translations Division.