2008-04-03
1. The Board of the Bank of Lithuania was presented information about the inspection of the branch of the Estonian bank Balti Investeeringute Grupi Pank AS (BIG) operating in Lithuania. The branch of the BIG was instructed to remove by 1 September 2008 the violations of legal acts established during the inspection.
The Board was informed that the branch of the BIG in Lithuania stands out in the Lithuanian banking system with its orientation to the provision of consumer loans of higher risk and accordingly higher yield, with lower requirements applicable for the assessment of the beneficiaries’ creditworthiness and credibility than it is usual in the Lithuanian banking system. During the inspection it was established that the branch did not have a standing internal audit service, as required by the Law on Financial Institutions. The inspection also established that the branch’s Regulations for Loan Assessment were not in full compliance with the Minimum Loan Assessment Requirements approved by the Board of the Bank of Lithuania.
The Board decided to apprise the BIG bank of Estonia of the results of the inspection of the branch in Lithuania and also of the necessity for the bank to ensure the removal of the violations of legal acts mentioned above.
2. On the results of inspection of the AS “UniCredit Bank” Lithuania branch
The Board of the Bank of Lithuania was presented information on the results of inspection of the Latvian bank “UniCredit Bank” Lithuania branch. Some deficiencies in its operation were identified. The “UniCredit Bank” Lithuania branch informed the Bank of Lithuania that some of the deficiencies mentioned in the inspection report have already been removed and the remaining ones will be removed in the near future.
3. On the annual financial reporting of the UAB Lithuanian Mint in 2007
The Board of the Bank of Lithuania was presented and approved the UAB Lithuanian Mint’s financial reporting in 2007.
The audit of the company’s financial reporting in 2007 was performed by the audit company UAB “Ernst&Young Baltic”. In the auditors’ view, the financial reporting presented in every significant respect accurately reflected the company’s financial position as of 31 December 2007, its financial performance in 2007 and cash flows according to the business accounting standards of the Republic of Lithuania. The audit company familiarised itself with the company’s annual report of 2007.
4. Allocation of the distributable profit in 2007 of the UAB Lithuanian Mint
The Board of the Bank of Lithuania approved of the proposal by the Board of the UAB Lithuanian Mint to allocate the distributable profit in 2007 as follows: LTL 66,888 for the required reserve, LTL 1,500,000 for the investment reserve, LTL 267,550 for staff incentive, social, cultural and similar purposes, and the remaining retained profit (LTL 14,548) shall be transferred to the next financial year.
The proprietary rights and obligations of the UAB Lithuanian Mint operating in Vilnius shall be exercised by the Bank of Lithuania.
5. On the approval of the sample 50 litas commemorative coin dedicated to Kaunas Castle (from the series “Historical and Architectural Monuments of Lithuania”)
The Board of the Bank of Lithuania approved the sample 50 litas commemorative coin dedicated to Kaunas Castle (from the series “Historical and Architectural Monuments of Lithuania”).
The graphic design and the plaster model of this coin were created by Giedrius Paulauskis. The sample was minted by the UAB Lithuanian Mint.
The commemorative silver coin dedicated to Kaunas Castle is to be issued in May this year. The mintage of the coin ? 10 thousand pieces.
6. On the approval of the Annual Report of the Bank of Lithuania
The Board of the Bank of Lithuania approved the Annual Report of the Bank of Lithuania for 2007.
Each year the Bank of Lithuania publishes its Annual Financial Statements together with Auditors’ Report. It will be published as a separate publication and will also be available on the Bank of Lithuania’s website.