Bank of Lithuania announces its inspection plan
Continuing its initiative introduced last year, the Bank of Lithuania announces the list, dates and areas of planned inspections of domestic financial market participants.
‘We believe that the decision to pre-announce scheduled inspections paid off – such transparency, first and foremost, encourages more constructive communication and cooperation. Announcing inspections in advance also acts as a preventive measure – financial institutions assess potential shortcomings and eliminate them. When at least some ‘homework’ is done beforehand, the inspection and on-site visits run smoother and quicker. Thus we plan to continue this practice,’ said Vytautas Valvonis, Director of the Supervision Service at the Bank of Lithuania.
This year the Bank of Lithuania will carry out 14 planned inspections: it will inspect 2 banks, 1 central credit union, 1 credit union, 3 issuers, 2 consumer credit providers, 2 insurance undertakings, 2 management companies, and 1 electronic money institution. In addition to such inspections and taking into account the changes in the activities of market participants or their complaints, the Bank of Lithuania also conducts inspections that are not pre-announced.
The right of the Bank of Lithuania to inspect financial market participants under its supervision is provided for by the Law on the Bank of Lithuania. Sixteen planned inspections were conducted in 2017.
The aim to create an advanced and attractive regulatory and supervisory environment within the financial sector is one of the Bank of Lithuania’s strategic directions for 2017–2020.