At the Board of the Bank of Lithuania
The Bank of Lithuania budget for 2012 is smaller than that for 2011.
The Bank of Lithuania budget for 2012 will amount to LTL 100.58 million – i.e., it is by 6.3 per cent smaller than the approved 2011 budget (LTL 107.38 million). This is the decision that has been taken today by the Board of the Bank of Lithuania.
Smaller budget expenses were largely defined by being reduced operational expenses.
From the beginning of the next year the Bank of Lithuania will take over the functions of institutions under liquidation – the Securities Commission and the Insurance Supervisory Commission. A part of the staff of these institutions will work in a new Bank of Lithuania Supervision Service. Next year the Bank will also take over a part of the functions of the State Consumer Rights Protection Authority.
Regardless a slight increase of the number of the Bank of Lithuania staff because of the transfer of the mentioned functions, expenses related to labour relations in the Bank of Lithuania budget for the next year are envisaged to be LTL 42.39 million – LTL 0.4 million less than approved in 2011.
The Bank of Lithuania budget is planned on the basis of requirements associated with the implementation of objectives, performance of functions and activities set in the Law on the Bank of Lithuania and regarding the priorities formulated in the Bank of Lithuania Operational Guidelines.
Results of the inspection of AS “UniCredit Bank” Lithuania branch have been considered
The Board of the Bank of Lithuania considered results of the inspection of the bank AS “UniCredit Bank” Lithuania branch. Correctness of the preparation of financial statements and reports for supervisory purposes submitted to the Bank of Lithuania, assurance of the compliance with the liquidity ratio and effectiveness of the internal control system were checked. By way of sampling the compliance with the requirements for the data entry into the Loan Risk Database was examined. During the inspection some deficiencies in the operation of the bank were identified.
The Bank of Lithuania will inform the Latvian bank AS “UniCredit Bank” and the Latvian Financial Supervisory Authority about results of the inspection of AS “UniCredit Bank” Lithuania branch.
Lithuanian branches of foreign banks licensed in the European Union (EU) member states are supervised by the supervisory authority of the country under whose jurisdiction a foreign bank falls. However, this does not limit the right of the Lithuanian supervisory institution to perform their supervision regarding provisions of EU directives and legal acts of the Republic of Lithuania.
The Bank of Lithuania is responsible for the supervision of compliance with the liquidity ratio, it monitors deposit concentration in these branches, analyses their financial indicators, changes in assets and liabilities, income and costs, internal control mechanisms. For the sake of assurance of the correctness of information presented to the Bank of Lithuania about activities of these branches in our state, their inspections are performed.
Report to the Seimas has been approved
The Board of the Bank of Lithuania approved the Report on the Implementation of the Primary Objective of the Bank of Lithuania, Performance of its Functions and the Situation in the Banking System. The document presents information about an international and national macroeconomic development, analyses the performance of central bank functions.
According to the Law on the Bank of Lithuania, twice a year, Chairman of the Board of the Bank of Lithuania delivers reports to the Seimas on the implementation of its primary objective, performance of its functions, and the state of the banking system. The Report will in the nearest future be posted on the Bank of Lithuania website.
General Provisions for Statistical Reporting of Monetary Financial Institutions Balance Sheet and Collective Investment Undertakings have been amended.
Regarding the change made by a Regulation of the European Central Bank of the money market funds definition (ECB), the Bank of Lithuania Board made amendments to the General Provisions for Statistical Reporting of Monetary Financial Institutions Balance Sheet and Collective Investment Undertakings. These modifications will not change the statistical reporting burden of collective investment undertakings.
The ECB set new identification criteria of money market funds for statistical purposes in order to harmonise them with the identification criteria which are expected to be applied for supervisory purposes.
No objections have been received regarding the appointment of the Manager of the Klaipėda Branch of AB “Citadele” Bank.
AB “Citadele” Bank informed that Jurgita Šimanskienė was appointed Manager of its Klaipėda Branch. The Board of the Bank of Lithuania did not object to this appointment.