2004-08-12
1. The Board discussed the results of the inspection of Šiaulių Bankas carried out from 8 June to 9 July 2004.
The bank was obligated to classify doubtful assets into risk groups established during the inspection and to make appropriate specific provisions for them by 30 September 2004. The bank was also obligated to prepare a plan of measures for eliminating the operational shortcomings ascertained during inspection acceptable to the Bank of Lithuania and to submit it to the Bank of Lithuania no later than in 10 days from the day of making this resolution.
2. The Board also discussed the request by the Ignalina credit union to revoke an enforcement measure applied by the Resolution of the Board of the Bank of Lithuania of 20 May 2004 when a license of the credit union to grant member loans to its members was temporarily suspended.
Taking into consideration the fact that the Ignalina credit union continued to grant member loans to the members of the credit union during the period of validity of the enforcement measure, the decision was made not to revoke the enforcement measure applied by the earlier Resolution of the Board of the Bank of Lithuania.
3. A permission was issued to Kredyt Bank S.A. Vilnius Branch to terminate its operation.
4. A permission was issued to AB Ukio bankas to establish a representative office in Moscow.
5. Resolution No. 121 of the Board of the Bank of Lithuania of 26 September 2002 "On Regulations on the Management of the Register of Cash Operations and Transactions Performed by a Client" and Resolution No. 122 of the Board of the Bank of Lithuania of 26 September 2002 "On Approving the Criteria for Determining Whether a Monetary Operation is Suspicious" were declared invalid.
The decision was made considering the fact that the new revised Law of the Republic of Lithuania on the Prevention of Money Laundering specifies that the Criteria and the Rules shall be established by the Government of the Republic of Lithuania only instead of the Government together with the Bank of Lithuania, as specified in the earlier revision.
6. The Procedure of Setting the Sale Prices for Republic of Lithuania Banknotes and Coins of Numismatic Value was amended by including the Value Added Tax into the sale price.
The decision was made considering the fact that the Bank of Lithuania was registered in the Register of the Value Added Tax Payers.
7. A permission was issued to AB Nord/LB Lietuva to include a subordinated loan of EUR 11 million received from the European Bank for Reconstruction and Development into the bank capital.
The decision was made considering the fact that the loan shall not have negative impact on the financial situation of the bank.