Bank of Lithuania
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The central banks of the Baltic and Nordic region will seek to coordinate actions, in case a banking group operating in any of those countries needs help in dealing with liquidity issues. Such intentions are declared in a memorandum, which the head of the Bank of Lithuania and representatives of seven other central banks signed in Frankfurt am Main on Thursday, 15 December.

‘In a gentlemanly manner, we have agreed that in the event of any temporary liquidity problems, our region’s central banks will inform each other as quickly as possible. This memorandum is evidence of the signing countries’ willingness to cooperate, when necessary, in dealing with bank liquidity issues. The financial sectors of the Nordic and Baltic countries are closely linked; thus, the actions of central banks within one jurisdiction would likely have an impact on other countries,’ said Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania.

According to him, the eight central banks also agreed on the good practice principles and procedures, which would facilitate exchange of information helpful in better monitoring the liquidity situation in the Nordic and Baltic region’s financial sector and, when problems arise, operatively dealing with them. This is provided for in the memorandum signed by the Danish, Estonian, Finnish, Icelandic, Latvian, Lithuanian, Norwegian and Swedish central banks.