Bank of Lithuania will strengthen competition, eliminate administrative barriers in financial market, increase effectiveness
The Board of the Bank of Lithuania approved the strategic directions for the activities in 2017–2020 and newly defined the organisation’s mission and specific objectives. After implementing them, the Bank of Lithuania would become one of the most effective central banks in the Nordic and Baltic region.
‘The Bank of Lithuania’s strategic directions for the next four years are united through one common basis – generating benefits for society. The essence of the chosen directions can be defined with five key words: competence, competition, return, partnership and effectiveness. After defining them, we have also envisaged specific tasks and clear criteria, based on which we will measure the result achieved,’ says Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania, emphasising the Bank’s aim to be an advanced, enterprising and open bank within the Eurosystem.
Bank of Lithuania’s strategic directions for 2017–2020
Competence. The Bank of Lithuania will strengthen its role as a centre of excellence in economics and finance. For that purpose, it is intended to increase the organisations’ analytical potential, strengthen research activities and repute in the economic and financial area both in Lithuania and on an international scale, widen the distribution of economic thought that would help take rational decisions and address basic economic issues.
Competition. We will work to create a competitive and advanced payments market in Lithuania, provide a favourable environment for the operation of innovative financial service provision models. That will be ensured through the widening of possibilities for market participants to use the infrastructure of the Bank of Lithuania’s payments system. The infrastructure itself will be improved, instant payments will be developed and popularised at the same time. The aim is that, in 2020, the number of non-cash payments per capita would double to 300. In addition, the success of the direction will be assessed taking into account the share of electronic payments between market participants and consumer satisfaction with the payments market itself.
Return. Aiming at overcoming the low interest rate and other challenges, it is intended to widen investment strategies and enhance risk management. Considering the investment climate and risks, the Bank of Lithuania aims at earning a return on investment as high as possible, in order to cover operational expenditure and transfer profits into the state budget.
Partnership. The Bank of Lithuania plans to become a financial sector partner encouraging innovations and sustainable financial market growth. To reduce administrative barriers, the aim will be for financial market participants to assess supervision and the regulatory environment favourably. It will also be aimed that Lithuania is assessed as a centre of financial technologies in the Nordic and Baltic region.
Effectiveness. The Bank of Lithuania will seek to be one of the three most effective central banks in the Nordic and Baltic region. To make operating processes effective and to implement changes, it is planned to cut operational expenditure by 20 per cent.