2005-05-12
1. On Thursday, the Board of the Bank of Lithuania issued a warning to the AB SEB VB Mortgage Bank for violations of legislation and drawbacks in its operations.
The decision on the application of an enforcement measure was taken by the Board of the Bank of Lithuania on the basis of the results of the examination of AB SEB VB Mortgage Bank carried on from 17 February to 4 March 2005.
The general examination focused on the Bank’s management, internal control, management of individual risks (credit, liquidity, market and operating risks) and compliance with regulating legislation and the Bank’s internal regulations for the period from 1 April 2004 to 31 January 2005.
The AB SEB VB Mortgage Bank was instructed to draw up a plan for removing violations of legal acts and the drawbacks established during the examination and present it to the Bank of Lithuania.
The Bank was also instructed to remove the legal violations and drawbacks by 1 August 2005.
2. The Board was presented information by the Credit Institutions Supervision Department on stress testing performed in domestic commercial banks. The stress testing was carried out by all operating commercial banks on the basis of annual financial statements for 2004.
The testing was used to assess credit, market (interest rate, exchange rate and equity price), liquidity and operating risks. It was established that credit risk had the largest impact on the operations of banks.
The Board noted that the results of the stress testing made it possible to assert that even under the most unfavourable scenarios banks would be able to withstand the impact of a financial crisis and retain a sufficient capital base.
Having conducted the testing and reviewed its results, banks have provided for a number of actions to be taken to ensure business continuity under one or another scenario. Strengthening the capital base remains the key measure for reducing risk.
3. The Board approved the results of the graphic (artistic) design competition for the 50 litas commemorative coin to mark the 100th Anniversary of the Great Seimas of Vilnius. The first nomination was awarded to Albertas Gurskas, the second to Rytas Jonas Belevicius and the third to Rimantas Eidejus.
The Board approved the graphic (artistic) designs of the obverse and the reverse of the coin by Albertas Gurskas. The layout of the edge, containing the historical symbol of the Gediminaiciu stulpai (Columns of Gediminas) repeated at equal intervals, was also approved.
The coin to mark the 100th anniversary of the Great Seimas of Vilnius is to be issued in the fourth quarter of 2005.