2007-11-08
1. The Board of the Bank of Lithuania was presented information on the results of the inspection of AB bankas Snoras.
The bank was instructed to remove all deficiencies indicated in the inspection report by 1 May 2008.
The inspection focused on the bank management, internal control, management of individual risks (credit, liquidity, market and operational) and compliance with the legal acts regulating bank activities and the requirements of the bank’s internal regulations.
2. Inclusion of a subordinated loan in the capital of AB Sampo bankas
The Board of the Bank of Lithuania granted permission to AB Sampo bankas to include the subordinated 10-year loan of EUR 13,000,000 (LTL 44,886,400) received from its parent bank Danske Bank A/S in Tier 2 capital of the bank.
According to the calculations of Sampo bankas, the funds of the subordinated loan will establish conditions for the bank to expand its activities steadily and have a positive influence on the bank's compliance with prudential requirements: the bank's capital adequacy ratio will increase, the standard liquidity ratio will improve, and the indicators of maximum open position in foreign currency and maximum exposure will decline.
Upon including the new subordinated loan in Tier 2 capital of the bank, the capital base AB Sampo bankas would rise to LTL 509.7 million, according to the data for 1 October 2007.
3. The Rules for Granting Intraday Credit in Euro
The Board of the Bank of Lithuania approved the Rules for Granting Intraday Credit in Euro. They will become effective as of 19 November 2007.
On this day, the Eurosystem’s payment system TARGET2, to which the Bank of Lithuania will be connected, will start its operation. The system LITAS-PHA has been developed for processing settlements of those credit institutions that will not participate in the new system directly. The owner and operator is the Bank of Lithuania. The new system will be interlinked with TARGET2 and will allow LITAS-PHA participants to settle via the Bank of Lithuania between each other and with the participants of the TARGET2 component systems. This system will grant intraday loans, ensuring liquidity of credit institutions needed for making settlements.
The Rules approved today establish the entities that may be granted intraday credit in euro, collateral for securing these credits, the procedure for their granting, requirements for a timely repayment of intraday credits in euro, sanctions for intraday credits that were not repaid timely and the grounds for losing the right to receive intraday credits in euro.
It was established that the intraday credit line administration fee will make up 0.3 per cent of the annual interest on the intraday credit limit.
4. Production and issue of a numismatic set of circulation coins of the 2008 issue
The Board of the Bank of Lithuania decided to order the production of a numismatic set of circulation coins of the 2008 issue, which will include the coins of all denominations currently in circulation. It is planned to issue the set into circulation in the second quarter of 2008.
4,000 units of each denomination of circulation coins (10 centas, 20 centas, 50centas, 1 litas, 2 litas and 5 litas coins of the 2008 issue and 1 centas, 2 centas and 5 centas coins of the 1991 issue) will be minted for the new numismatic set.
The Bank of Lithuania had already issued three such sets: in 1991, 2000 and 2003.