Services

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

Mindaugas Vaičiulis, Director of the Banking Service

Our Service encompasses three Departments – the Operations and Payments Department, the Market Infrastructure 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 (Ministry of Finance of the Republic of Lithuania, financial institutions), as well as manages two payment systems. 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 Bank of Lithuania 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

Gediminas Šimkus, Director of the Economics and Financial Stability Service

In the upcoming years, we will strengthen the role of the Bank of Lithuania as a centre of excellence in economics and finance. To this end, we plan to develop our organisation’s analytical potential, stimulate research activities, enhance our reputation in the fields of economics and finances on both Lithuanian and international level, and share economic progress that would help make rational decisions and solve key economic problems. Our 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 them to get a better understanding of and project 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 the credit unions operating in Lithuania and ensure their sustainable and long-term development. We cooperate with policy makers and market participants to implement laws establishing changes towards better regulation of the credit union sector.

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

• Seeks to ensure stability and credibility of the financial system
• Maintains regular contact with financial market participants and their customers
• Investigates and settles disputes between consumers and financial service providers
• Applies legal innovations in the financial sector

Vytautas Valvonis, Director of the Supervision Service

The Supervision Service is one of the largest structural units of the Bank of Lithuania. It consists of two Departments – the Prudential Supervision Department and the Financial Services and Markets Supervision Department. Our Service brings together more than 100 actively-working experts in their fields. In working together, efficiently supervising financial market participants, financial services and markets, as well as improving financial service consumer confidence in financial markets, we aim to ensure stability and credibility of the financial system.

It is crucial for us to develop an attractive financial market where innovation prevails, hence we keep in close contact with financial market participants and other institutions in the Republic of Lithuania in preparing draft legal acts – we initiate discussions and hold consultations, regularly inform on potential changes in the regulatory environment. We consult with financial market participants and devote much attention to improving the supervisory environment, thus promoting sustainable development of the financial market.

The Supervision Service maintains regular and close contact with financial market participants and their customers. We investigate disputes between consumers and financial service providers and take necessary decisions (recommendatory in nature) to settle them, admit complaints about the provision of financial services from both natural and legal persons, monitor trade activities in the market for financial instruments, and carry out various reviews (e.g. on pension funds, activities of issuers, etc.) which are relevant to financial market participants and investors.

We seek to ensure that the financial market employs highly-qualified specialists of sufficiently high repute, and financial services are provided in a professional manner; therefore, we issue financial brokerage and/or insurance broker licences. Only licensed financial market participants may operate in the financial market: we evaluate applications for a license by checking whether an enterprise complies with specific prudential requirements laid down in legal acts, if contenders for an executive position in a financial institution are of good repute and meet the qualification and experience requirements established in legal acts.

We safeguard consumer interests, thus we regularly update relevant information on licensed financial brokerage firms and brokers, enterprises licensed to provide services in Lithuania’s financial market, as well as provide information on unlicensed enterprises that offer their services to people residing in Lithuania.

Our Service aims to ensure that Lithuania’s financial market is innovative and new participants entering the market encourage healthy competition, thus we partake in more efficient implementation of legal innovations and constantly improve the licensing process.

• Formulates Bank of Lithuania 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

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

The 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 ECB, 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.

Our 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.