2008-06-12
1. The Board of the Bank of Lithuania granted permission to AB DnB NORD bankas to include the subordinated loan of EUR 15,000,000 (LTL 51,792,000) with the maturity of seven years received from the Danish bank Bank DnB NORD A/S in Tier 2 capital of AB DnB NORD bankas.
According to the clarification of AB DnB NORD bankas, the need to strengthen the bank?s capital base is related to the rapid growth of the bank last year and the planned investment and business expansion this year. It will positively affect the bank’s capital adequacy ratio.
After including the new subordinated loan in the bank’s Tier II capital, the capital base of DnB NORD bankas will be LTL 1,026,607 thousand, according to the data of 1 June 2008.
2. Graphic designs of the second commemorative coin from the series dedicated to mark the millennium anniversary of the mention of the name of Lithuania
The Board approved the results of the graphic (artistic) design competition for the second 100 litas commemorative gold coin from the series dedicated to mark the millennium anniversary of the mention of the name of Lithuania.
The design by Liudas Parulskis was granted the first place, with the designs by Vidmantas Valentas and Algimantas Bliudzius ranking second and third.
The Board approved the graphic designs of the obverse and the reverse of the coin created by Liudas Parulskis. The Board also approved the inscription on the edge of the coin: LIETUVOS VARDO TUKSTANTMETIS * (twice) (MILLENNIUM OF THE NAME OF LITHUANIA).
The issue of this coin into circulation is planned in the third quarter of 2008.
This first coin from this series was issued in September 2007. The third coin will be issued next year.
3. Financial Stability Review (2008)
The Board of the Bank of Lithuania discussed the draft Financial Stability Review (2008).
The Bank of Lithuania has been publishing such reviews since 2006.
The foreword of the new review says that, in analysing the situation in the domestic financial market, the Bank of Lithuania aims at informing market participants about the systemic risk related to their operations, therefore, the financial stability analysis differs from the ongoing supervision of credit and other financial market institutions, which is aimed at testing the operating risk of an individual institution. The main objective of the financial stability analysis is to identify both internal and external threats to the domestic financial system and to evaluate the system’s ability to withstand the effects of unfavourable internal and external shocks.
The Bank of Lithuania hopes that financial stability reviews will be helpful in identifying more thoroughly potential risks to the financial system of Lithuania, and will also encourage discussions on the issues of financial stability by financial market participants, economists and all those interested in financial markets.
The new Financial Stability Review will soon be published on the website of the Bank of Lithuania.