Services

• Implements the monetary policy of the Eurosystem
• Manages the financial assets of the Bank of Lithuania
• Provides banking and investment services

Jonas Kanapeckas, Director of the Banking Service

The Banking Service encompasses two departments – the Operations and Payments Department and the Investment Management Department – and an autonomous Risk Management and Reporting Division.

We implement the monetary policy of the Eurosystem in Lithuania by carrying out open market operations and providing standing facilities. We also ensure participation of the Bank of Lithuania in the Eurosystem’s expanded asset purchase programme, commonly referred to as quantitative easing. It supports economic recovery in the euro area through non-conventional monetary policy measures.

The Banking Service executes payments and settlements initiated by our organisation and its customers (the Ministry of Finance of the Republic of Lithuania, financial institutions). The retail payment system CENTROlink aims to increase competition in the payments market: system facilities are available not only to banks, but also credit unions and electronic money institutions, operating both in Lithuania and abroad. Payments made through CENTROlink reach all payment service providers operating in SEPA. We also manage TARGET2-LIETUVOS BANKAS, which is part of TARGET2. The system is used to execute large-scale payments by the Bank of Lithuania and its customers in real time.

We are entrusted with the task of directly managing the Bank of Lithuania's financial assets (international reserves and investments in euro), important to maintaining the financial health of the country. Financial assets help ensure the stability of the financial system in Lithuania and the euro area, create conditions for smooth monetary policy implementation, and ensure financial independence of the Bank of Lithuania. They also allow the country to properly withstand economic and financial shocks. Profits from investment cover our organisation’s operational costs; the majority of profits earned are transferred to the State Budget. Given the investment climate and potential risks, the Bank of Lithuania aims to earn maximum return on investment, thus we plan to develop investment strategies and strengthen risk management.

• Strengthens the role of the Bank of Lithuania as a centre of excellence in economics and finance
• Forecasts economic development trends and makes macroeconomic projections
• Performs stress tests to assess the resilience of the domestic financial system to adverse shocks
• Collects and presents monetary and financial statistics

Director of the Economics and Financial Stability Service

We strive to strengthen the role of the Bank of Lithuania as a centre of excellence in economics and finance. To this end, we continuously enhance our organisation’s analytical potential, stimulate research activities, strengthen our reputation in the fields of economics and finances on both Lithuanian and international level, and share economic progress to help make rational decisions and solve key economic problems. The Economics and Financial Stability Service and the three departments that work under its umbrella – the Economics Department, the Financial Stability Department, and the Statistics Department – play an important role in this process.

The Economics and Financial Stability Service participates in the decision-making process of the euro area monetary policy. We analyse economic trends in Lithuania and foreign countries, forecast potential economic developments and make macroeconomic projections. Research conducted by our experts allows identifying the impact of monetary policy on the economy and projecting the potential implications of changing economic conditions for economic growth.

Under the mandate of the Seimas, the Bank of Lithuania implements macroprudential policy, which contributes to the protection of the stability of the domestic financial system, including strengthening the resilience of the financial system and reducing systemic risks. Our economists prepare financial stability reviews, conduct surveys of financial institutions and households, and provide relevant economic and financial information to the media and their peers, which allows projecting and getting a better understanding of both internal and external threats to Lithuania’s financial system. We regularly perform stress tests in order to assess the resilience of the domestic financial system to adverse internal and external shocks.

Together with the Supervision Service, we strengthen Lithuania's credit union sector and ensure its sustainable and long-term development. We cooperate with policy makers and market participants to implement laws establishing changes towards better regulation within the sector.

The Economics and Financial Stability Service collects, compiles, publishes and provides statistical information. We also manage the Loan Risk Database, which contains data on credit taking parties. Natural and legal persons may access their personal data stored therein.

• Seeks to ensure stability and credibility of the financial market
• Maintains regular contact with financial market participants and their customers
• Investigates and settles disputes between consumers and financial service providers
• Applies innovative solutions and contributes to enhancing attractiveness of the financial market

Jekaterina Govina, Director of the Financial Market Supervision Service

The Financial Market Supervision Service is one of the largest structural units of the Bank of Lithuania. It consists of three departments – the Banking and Insurance Supervision Department, the Financial Services and Market Supervision Department as well as the Legal and Licensing Department. Our service brings together more than 100 experts who seek to ensure the stability, credibility and maturity of the financial system.

We aim to:

Strengthen the credibility and integrity of financial market participants as well as contribute to risk mitigation, by focusing prudential supervision on increasing the reliability and stability of supervised banks, insurance undertakings, credit unions, payment institutions and other financial market participants. In carrying out our supervisory mandate, we seek to engage financial market participants in responsible behaviour. To this end, we individually assess all potential risks arising from the activities of a particular entity.

Ensure ethical and transparent functioning of the Lithuanian financial market as well as prompt and efficient management of financial crime-related risks, by devoting particular attention to anti-money laundering and counter terrorist financing efforts and cyber security. In this field, we communicate and cooperate with other Lithuanian institutions and international authorities.

Create an advanced, innovation-oriented and sustainably developing financial market, by focusing on the improvement of the supervisory environment, increasing attractiveness of the financial market and reducing the administrative burden. Therefore, we keep in close contact with financial market participants and other institutions of the Republic of Lithuania in preparing draft legal acts – we initiate discussions and hold consultations as well as regularly inform them on potential changes in the regulatory environment of the financial market. We also pay significant attention to the digitalisation of supervisory measures and initiate regulatory changes promoting safe and innovative solutions.

Ensure that only licensed and reliable entities operate in the financial market, by assessing applications for authorisation and checking whether a particular company complies with the operational requirements set out in legal acts, as well as whether candidates for management positions are of impeccable reputation and meet the qualification and experience requirements laid down in legislation.

Consumer protection

Consumers have to be sure that they can trust financial service providers and that their money entrusted with them is safe. Confidence in the financial market allows consumers to make more active use of the offered services, which in turn facilitates the choice between different service providers. It should be in the interest of financial market participants to treat their customers properly and to strive to provide high-quality, consumer-friendly, efficiently managed and innovative services.

• We aim to ensure that financial products and services meet customer needs and become more available.

• Seeking that consumers can make more informed decisions without any potential negative consequences in the future, we actively promote responsible financial behaviour and monitor whether information on particular financial services is properly disclosed. We investigate disputes between consumers and financial service providers and take necessary decisions (of a recommendatory nature) to settle them.
• We receive and analyse various warning signals as well as handle complaints regarding the provision of financial services, monitor trade activities in the market in financial instruments and prepare reviews (on pension funds, activities of issuers, etc.) for financial market participants and investors.
• To safeguard consumer interests, we regularly update relevant information on licensed institutions, financial brokerage firms and brokers, authorised to provide their services in the Lithuanian financial market, as well as disclose information on companies providing unlicensed services and block malicious websites offering quick investment gains.
• The Financial Market Supervision Service strives to properly represent consumer interests, by actively cooperating with other Lithuanian institutions operating in the field of consumer protection. Moreover, the Bank of Lithuania is a member of the European Commission’s financial dispute resolution network FIN-NET and maintains close links with the country’s consumer protection associations.

• Formulates the Bank of Lithuania's strategic and action plans, oversees their implementation
• Prepares the Bank of Lithuania budget and oversees its control
• Prepares the organisation’s financial statements
• Manages IT needs and ensures cybersecurity
• Maintains safe and healthy working conditions

Tomas Kvaraciejus, Director of the Organisation Service

The key tasks of the Organisation Service include planning and preparation of the budget and control of adherence to it, as well as ensuring the implementation of measures under the Bank of Lithuania strategic directions. We are also responsible for coordinating various processes, projects and Bank of Lithuania risk management. The Organisation Service also mobilises the entire organisation to support and act on these important activities.

The Organisation Service consists of three departments – the Accounting Department, the Information Technology Department and the Services Administration Department – and the Performance Management Division.

We prepare and implement the financial accounting policy of the Bank of Lithuania, are responsible for preparing the Bank of Lithuania day balance and submitting it to the European Central Bank, draw up the annual financial statements of the Bank of Lithuania, manage the accounting for transactions initiated by Bank of Lithuania units and oversee whether they are duly recorded in financial accounting.

We design, create and improve IT systems used at the Bank of Lithuania, as well as administrate data centre hardware and software. Particular attention is devoted to cybersecurity.

The Organisation Service also accepts queries, requests and complaints from residents, organisations and enterprises and passes them on to other units according to their field of expertise. We take care of Bank of Lithuania buildings, premises and maintain safe and healthy working conditions. The canteen provides catering services for employees and guests visiting our organisation.

The Organisation Service is in charge of operational and resource planning, manages internal processes, and coordinates risk management and business continuity processes.