Head of Europe’s Banking Supervision to discuss new challenges for the banking system with Bank of Lithuania representatives in Vilnius
Starting a two-day visit in Lithuania today, Danièle Nouy, Chair of the Supervisory Board of the European Central Bank (ECB), will visit the Bank of Lithuania to discuss cooperation between the ECB and the Bank of Lithuania in carrying out banking supervision, the latest results of the stress testing of European banks, as well as review the immediate challenges for the European and domestic banking system.
‘The low interest rates environment, strengthening competition in the financial sector, and ensuring of the adherence to uniform supervisory rules across the euro area countries are the challenges that banks must adapt to first in order to achieve stability in their operations,’ says Ingrida Šimonytė, Deputy Chair of the Board of the Bank of Lithuania.
‘Our financial sector is in good state and the results of the stress testing of banks published a couple of weeks ago confirmed that foreign banks managing Lithuania’s major banks have an adequate capital stock to withstand potential shocks. Nevertheless, the circumstances and new challenges arising require special vigilance; hence we seek to ensure implementation of the highest supervisory standards in cooperation with the ECB,’ stressed Šimonytė.’
Danièle Nouy said: ‘Our job is to safeguard the financial strength and solidity of the banks in the euro area, so that our citizens and businesses have access to the credit they need to invest with confidence. The supervisors across Europe, including our colleagues in the Bank of Lithuania, provide their expertise and support so that together we can achieve this. I thank them for their hard work and commitment.’
During her visit in Lithuania, Nouy also plans to meet with representatives of the Association of Lithuanian Banks and commercial banks.
This is the second visit of the Chair of the Supervisory Board of the ECB in Lithuania. She was on her first official visit in our country in early 2015, when Lithuanian became a member of the banking union and was involved in the new European banking supervision system — the Single Supervisory Mechanism (SSM).
The SSM consists of the ECB and the national supervisory authorities of the euro area. In the meetings of the Governing Council of the ECB and the Supervisory Board of the ECB as well as in different working groups of the ECB, representatives of the Bank of Lithuania, together with other national central banks, adopt decisions on the application in the euro area of supervisory tools and standards based on international standards and best practices, and address other relevant issues related to banking supervision.
Direct supervision of the three largest banks in Lithuania — SEB bankas AB, Swedbank, AB, and AB DNB bankas — is carried out by the ECB, which relies on the Bank of Lithuania’s staff, resources and experience in performing its daily supervisory functions.