Bank of Lithuania granted AS Inbank authorisation to open a bank branch
The Bank of Lithuania granted the Estonian bank AS Inbank authorisation to establish a branch and provide financial services in the Republic of Lithuania.
AS Inbank intends to establish the branch already this year. It plans to accept resident deposits and provide lending services.
The foreign bank branch will merge with the public limited liability company Mokilizingas (authorisation to acquire the company was issued in mid-May 2018) and gradually take on all of its rights and obligations (including the loan portfolio, staff, etc.).
Currently seven banks in the country have a banking or a specialised bank licence; nine banks operate as a foreign bank branch. Together with the European Central Bank, the Bank of Lithuania has been assessing four more applications: three for a specialised bank licence, one – for a banking licence.
Procedures for establishing a bank and a foreign bank branch differ. If a bank from another EU Member State wants to establish a branch in the Republic of Lithuania, it must apply to the financial supervisory authority of its home country. Having evaluated the application, the latter forwards the application and related documents to the Bank of Lithuania, which undertakes to provide its final decision within two months. The foreign bank branch may only commence its activities in the Republic of Lithuania when the Bank of Lithuania grants authorisation. The branch is supervised by the financial supervisory authority of the country in which it is established, while deposits are insured with the deposit and investment insurance fund of the said country. Issues related to consumer protection are handled by the Bank of Lithuania.