Central banks of Lithuania and Ukraine will cooperate in the area of supervision of credit institutions

“It is the tenth memorandum of this type signed by the Bank of Lithuania with foreign supervisory authorities. The memorandum with Ukraine became relevant due to the fact that SEB Vilniaus bankas acquired a subsidiary bank in this country. In such cases, the established international practice encourages agreement of the institutions concerned on the joint supervision of banks”, said Reinoldijus Sarkinas, Chairman of the Board of the Bank of Lithuania.

The supervisory authorities of Lithuania and Ukraine agreed on co-operation in the area of supervision of foreign branches and subsidiaries of credit institutions. The scope of cooperation will encompass the licensing (both issuance and revocation of licences) as well as the ongoing supervision of foreign branches and subsidiaries, and other issues covered in the memorandum. On the basis of mutual trust, the parties will exchange information on the credit institution supervisory standards and requirements in effect as well as on essential changes in the banking sector.

The memorandum was signed on behalf of the Bank of Lithuania by Mr. Reinoldijus Sarkinas, Chairman of the Board, and on behalf of the National Bank of Ukraine by Mr. Volodymyr Krotiuk, Deputy Chairman.

The Bank of Lithuania had already signed the memoranda of understanding on co-operation in the area of supervision of credit institutions with the central banks and financial supervisory authorities of Latvia, Estonia, Poland, Sweden, Finland, Germany, Belarus and Russia.