2011-06-23
AB DnB NORD Bankas instructed to remove operational deficiencies
The Board of the Bank of Lithuania discussed the results of the inspection of AB DnB NORD Bankas. Having assessed them, the Board of the Bank of Lithuania instructed the Bank to come up with a plan of measures to eliminate the deficiencies related to the Bank's risk management and internal control systems, as well as to other deficiencies in the Bank’s operation established during the inspection, and to submit it to the Bank of Lithuania. The Bank’s attention was drawn to the fact that it needs to take into account capital requirement while also assessing the results of stress testing.
AB DnB NORD Bankas was instructed to eliminate the deficiencies in its operation established during the inspection and supervisory review and evaluation by 31 October 2011. The Head of Administration of AB DnB NORD Bankas was instructed to come to the Bank of Lithuania and explain how the Bank intended to eliminate the established operational deficiencies and, after the expiry of the fixed term, to explain how it had eliminated them.
Credit unions allowed to directly participate in the payment systems LITAS
The amendments to the Rules of Operation of the Payment System LITAS-RSL and of the Retail Payment System LITAS-MMS approved by the Board of the Bank of Lithuania today allow credit unions to become participants in the systems. This provides conditions for their more active operation and competition in the payments markets.
The Rules of Operation of the Payment System LITAS-RSL and the Rules of Operation of the Retail Payment System LITAS-MMS have been brought in line with the amended Law on Settlement Finality in Payment and Securities Systems. The moments of entry of payment orders into the system LITAS-MMS and those of irrevocability, and the list of participants have been revised. A responsibility has been imposed on participants in the payment systems to monitor payment orders of their own and those submitted to them by other participants, as well as the results of their processing.
The Bank of Lithuania manages and operates two payment systems for settlement in litas: the real-time gross settlement system LITAS-RLS and the retail payment system LITAS-MMS. Participants in these systems are the Bank of Lithuania, domestic commercial banks, foreign bank branches and the Lithuanian Central Credit Union. These systems are also available to financial brokerage companies and AB Central Securities Depository of Lithuania.
The Procedure for the Registration of Payment and Securities Settlement Systems, Data Management and Publication amended
The Board of the Bank of Lithuania amended the Procedure for the Registration of Payment and Securities Settlement Systems, Data Management and Publication today. The Procedure revised the provisions related with the registration of the systems, making their official list, disclosure of information taking into account the Law on Settlement Finality in Payments and Securities Settlement Systems.
Urgent information about the systems, their operators and participants is published on the website of the Bank of Lithuania website at www.lb.lt.
The procedure for presenting information simplified
The amended Law on Settlement Finality in Payment and Securities Systems established simplified submission of information in relation to the systems, their operators and participants. Taking this into account, the Board of the Bank of Lithuania repealed the 25 March 2004 Board of the Bank of Lithuania Resolution No. 27 “On the approval of the procedure for submitting information related to payment and securities settlement systems, their operators and participants to the Commission of the European Communities, authorised institutions of the European Union and EFTA countries and system operators”.
The Law on Settlement Finality in Payment and Securities Settlement Systems imposed an obligation on the Bank of Lithuania to submit information to the European Commission (starting 31 December 2011 – the European Securities and Markets Authority) about the systems functioning in Lithuania and their operators. In the event of suspension of the operations or bankruptcy of a system participant, the Bank of Lithuania shall advise the system operator and the authorized institutions of the Member States, and starting 31 December 2011 – The European Systemic Risk Board and the European Securities and Markets Authority thereof. Upon receipt of a notification from the authorized institution of another Member State about suspension of the operations of a participant established in that Member State and participating in the Lithuanian systems or instigation of bankruptcy proceedings against it, the Bank of Lithuania shall advise the systems operators thereof.
In the Law on the Amendment of the Law on Settlement Finality there remained no obligation for a Lithuanian credit institution or a financial brokerage company participating in a system of another Member State to inform the Bank of Lithuania about their participation in that system. There also remained no obligation for the Bank of Lithuania to inform the authorized institution of another state about a participant registered in that state.