2010-02-04
The Board of the Bank of Lithuania was presented with the results of a full-scope inspection of AB SEB bankas. The inspection focused on the management, internal control, and management of individual risks (credit, liquidity, market and operational) of AB SEB bankas, as well as on certain issues of the bank’s internal capital adequacy assessment process (ICAAP).
The Board of the Bank of Lithuania instructed AB SEB bankas to eliminate the shortcomings related to the bank's risk management and internal control systems established during the inspection and other shortcomings indicated in the inspection report. Operational deficiencies should be removed by 30 September 2010.
Head of administration of AB SEB bankas was instructed to visit the Bank of Lithuania within a certain period of time and explain how AB SEB bankas intends to eliminate the shortcomings of operation of the bank established during the inspection. After the deadline for the implementation of these instructions, the head of administration of AB SEB bankas will have to report on their implementation.
Report on foreign reserve investment 2009
The Board of the Bank of Lithuania was presented the Report on Foreign Reserve Investment 2009 prepared by the Market Operations Department of the Bank of Lithuania.
The Report reviewed the trends of change in foreign reserve amounts, portfolio management results and their factors. The Board was presented the assessment of the exchange rate, interest rates and credit risk as well as the results of stress testing.
It should be noted that good annual investment results were achieved owing to a successful choice of investments and market trends that were favourable for the euro area government debt securities. Return on investment last year significantly exceeded the return of a comparative index. It also should be noted that very low yields in the euro area necessitate a more restrained assessment of future return prospects.
The Board of the Bank of Lithuania evaluated the results of investment positively.