2002-07-04
1. The Board discussed the results of the inspection of Medicinos Bank carried out from April 16 to May 14, 2002.
The Board instructed Medicinos Bank to remove the deficiencies presented in the inspection report by 1 August 2002 and report to the Bank of Lithuania.
2. The Board discussed the results of the inspection of Bank Snoras carried out from April 3 to May 10, 2002.
The Board decided to apply an enforcement measure to Bank Snoras, restricting the Bank’s operations with non-residents registered in the countries of increased asset risk.
The Bank was also instructed to remove the deficiencies in the classification of doubtful assets and remove other shortcomings established during the inspection.
3. The Board decided to grant permission to Ūkio Bank to include subordinated loans (total value LTL 10 million, shortest maturity above 5 years) into the Bank’s Tier II capital.
4. The Board decided to introduce changes to prudential requirements.
The decision changes the application of the maximum exposure requirement with respect to loans granted by a bank to a parent company, other subsidiaries of the same parent company or its own subsidiaries.
Pursuant to the amendments, in the event that the BoL does not perform the supervision of the whole financial group, loans granted by the bank to the parent company, other subsidiaries of the same parent company or its own subsidiaries may not exceed 20 per cent of the bank’s capital; if the supervision of the whole financial group is conducted by the BoL, such loans may not exceed 75 per cent of the bank’s capital.
The Board also decided to approve the Rules for Calculating Maximum Exposure and Large Exposure.