2012-03-06
The Board of the Bank of Lithuania amended the General Provisions for the Calculation of Capital Adequacy taking into account the amendments to the Republic of Lithuania Law on Financial Institutions and the Republic of Lithuania Law on Banks adopted on 21 April 2011. The Provisions established the procedure for calculating capital adequacy and assessed credit, market and operational risks. The requirements shall be applicable to all commercial banks holding a licence from the Bank of Lithuania and to the Central Credit Union.
Aiming at the uniform use of concepts in the document of financial institutions and of the Bank of Lithuania, in the amended Provisions group of interrelated clients was characterised the same as in the Law on Financial Institutions.
In the Provisions, the name of the component of capital which, by the shareholders’ decision, can be compiled of the profit of the previous financial year and is meant for the acquisition of treasury stock (“special retained reserve”) was made the same as in the Law.
As the requirement of large exposures in excess of 10 per cent of the bank’s capital was eliminated in the Law on Banks, it was deleted in the Bank of Lithuania’s document. The requirement will no longer be applied either to the banking book or the trading book.
As the requirement of large exposures in excess of 10 per cent of the bank’s capital was eliminated in the Law on Banks, it was deleted in the Bank of Lithuania’s document. The requirement will no longer be applied either to the banking book or the trading book.