2017-02-07
Bank of Lithuania for the first time reveals to financial market participants its plan of reviews
To create an advanced and attractive financial sector environment, the Bank of Lithuania has for the first time notified banks, insurance undertakings, electronic money institutions and other financial market participants subject to its supervision of the terms and volumes of this year’s planned inspections and examinations.
‘The possibility to prepare for a review in advance will ensure smoother cooperation of the supervisory authority and market participants, faster submission of information necessary for supervisory purposes. We will notify market participants of future reviews at the beginning of each year. Although we increase transparency and confirm our goodwill, we will, however, continue carrying out unexpected, target reviews without prior notice of entities to be reviewed where necessary. This year, we will also carry out inspections of credit unions if needed,’ said Vytautas Valvonis, Director of the Supervision Service of the Bank of Lithuania.
The right of the Bank of Lithuania to inspect (review) financial market participants in carrying out supervision of the financial market is provided for by the Law on the Bank of Lithuania. 57 inspections were conducted in 2016.
According to Valvonis, disclosure of the inspection plan to market participants is one of the steps towards the implementation of the Bank of Lithuania’s goal to become a financial sector partner encouraging innovations and sustainable growth of the financial market. The strategic directions of the Bank of Lithuania for 2017–2020 provide that, in order to reduce administrative barriers, the aim is that financial market participants view supervision and the regulatory environment as favourable.
To improve the supervisory environment, the Bank of Lithuania consults and discusses with financial market participants, informs them in advance of the planned changes in the regulatory environment of the financial market.