2016-07-25
Activity of Amber credit union restricted, temporary administrator appointed due to violations identified during inspection
Having assessed the violations identified during an inspection of the Amber credit union, the Board of the Bank of Lithuania has restricted the activity of this credit union and appointed a temporary administrator — the company UAB Insolvensa. During the period of restricted activity, Amber will not be able to provide financial services and carry out other activities.
This enforcement measure, provided for in the Law on Credit Unions, was applied considering the violations of legal acts and shortcomings in the operations related to cash management, cash operations, etc. identified during the target inspection of the Amber credit union carried out by the Bank of Lithuania The inspection revealed that Amber performed questionable financial operations. This credit union would become insolvent if their total amount is recognised as losses and no assets of adequate value are found.
The Board of the Bank of Lithuania has obligated the temporary administrator to submit conclusions on the Amber credit union’s financial standing along with proposals; after considering them, it will be decided on the prospects for the operation of this credit institution.
74 licensed credit unions currently operate in Lithuania. About 160 thousand members participate in the activities of all credit unions. Deposits with credit unions amounting up to EUR 100 thousand, as well as deposits with banks, are covered by deposit and investment insurance.