2008-05-29
1. The Board of the Bank of Lithuania amended the forms of financial reports of banks and the Central Credit Union for supervisory purposes, which were approved on 28 September 2006. It was done in consideration of the amendments of the Guidelines on Consolidated Financial Reporting made by the Committee of European Banking Supervisors (CEBS).
In addition, to reduce the burden of reporting for banks, the Bank of Lithuania changed the frequency of provision of most explanatory tables. Their provision in interim periods was abandoned, while the requirement to submit full financial reports once per year remained. Several new positions were indicated, so that the Bank of Lithuania receives additional information required for conducting the supervision of banks and monitoring their financial stability.
Since the International Financial Reporting Standards (IAS No. 27 and IFRS No. 5) were amended, the Board of the Bank of Lithuania amended the conditions established in the Rules on the Consolidation of Financial Reports and Joint (Consolidated) Supervision of a Financial Group, under which financial reports are not consolidated and the joint supervision is not conducted.
Taking into consideration the requirements of the Directive of the European Parliament and of the Council, the Board supplemented the Key Principles of the Preparation of Credit Institutions Financial Accounting and Reporting. The Board of the Bank of Lithuania established that not only the head of a credit institution, but also the members of management and supervisory bodies should be responsible for veracity, correctness and timeliness of financial reports in accordance with the procedure established by the laws.
This Resolution of the Board of the Bank of Lithuania will enter into force on 30 June 2008.
2. Amendment of the Resolution of the Board of the Bank of Lithuania No. 1 of 29 January 2004 on the Rules for the Calculation of Liquidity Ratio
The Board of the Bank of Lithuania amended the Rules for the Calculation of Liquidity Ratio, which establish the procedure for the calculation of liquidity ratio of banks and foreign bank branches registered in the Republic of Lithuania and the Central Credit Union. The Report on Asset and Liability Composition by Maturity (form 7003), which should be submitted by banks to the Bank of Lithuania each month, was also amended.
The concepts and the names and structure of asset, liability and equity items used in this document were clarified to ensure their compliance with common European Union requirements. The submission of financial reports prepared according to them to the Bank of Lithuania by banks operating in Lithuania and the Central Credit Union was started from the beginning of this year.
The concept of liquid assets and liabilities and the procedure for the calculation of liquidity ratio will not change. Asset and liability items will be treated similarly both in the balance sheet report and in the report on asset and liability composition by maturity.
Moreover, the amended form of the report on asset and liability composition by maturity will enable the Bank of Lithuania to obtain additional information and better assess the liquidity risk management in banks and the existing financial flows not only at the level of a bank, but also on the level of the whole financial group. The need for such information emerged due to the trend of liquidity risk centralisation and the fact that the largest share of the banking sector of Lithuania belongs to financial groups of the European Union states.
This Resolution of the Board of the Bank of Lithuania will enter into force on 30 June 2008.
3. Revocation of a licence of AB Sampo bankas
As published earlier, Sampo bankas is reorganised due to its acquisition by the Danish bank Danske Bank A/S. All rights and obligations of Sampo bankas are transferred to the branch of Danske Bank A/S established in the Republic of Lithuania.
Therefore, the Board of the Bank of Lithuania revoked the licence of AB Sampo bankas issued by the Resolution of the Board of the Bank of Lithuania No. 32 of 22 December 1994 from the date of removal of AB Sampo bankas from the Register of Legal Entities.
Danske Bank A/S Lithuania branch will continue its operation at the same premises, where Sampo bankas operated earlier.
4. Approval of the sample 50 litas coin issued for participation in the silver coin programme “Europe. European Cultural Heritage”
The Board of the Bank of Lithuania approved the sample 50 litas commemorative coin issued for participation in the silver coin programme “Europe. European Cultural Heritage”.
The coin was minted by UAB “Lietuvos monetu kalykla” (Lithuanian Mint) according to the graphic designs of the obverse and the reverse of the coin created by the artist Rytis Jonas Belevicius.
The issue of this commemorative coin is planned in June 2008.