2007-10-25
1. The Board of the Bank of Lithuania had earlier established that commercial banks will be able to include the retained profit for the current year in their Tier 1 capital by implementing the General Regulations for the Calculation of Capital Adequacy from the beginning of 2008. They were approved by the Board of the Bank of Lithuania already on 9 November 2006 following the requirements of the Basle Committee on Banking Supervision, known as Basel II, as well as the EU directives relating to the new bank capital adequacy framework.
It was established today that a bank may include the retained profit for the current year in its Tier 1 capital, after deducting the taxes and dividends to be paid, only upon obtaining the permission of the Bank of Lithuania.
Permission regarding the inclusion of the retained profit for the current year or its part in the bank capital is issued according to the decision of the Board of the Bank of Lithuania, after making the assessment of the bank's financial situation, asset composition, loan and asset concentration, and the consequences of inclusion of the retained profit of the year in the bank capital.
2. Information on the operations of credit institutions and the activities of the Credit Institutions Supervision Department in the third quarter of 2007
The Board was presented information on the operations of domestic credit institutions and the activities of the Credit Institutions Supervision Department of the Bank of Lithuania in the third quarter of 2007.
The review of the operations of commercial banks, the Central Credit Union of Lithuania and credit unions is available in the section “Credit Institutions” of the website of the Bank of Lithuania.
3. Service Fees of the System LITAS-PHA
The Board of the Bank of Lithuania approved the Procedure for the Calculation of Service Fees of the System LITAS-PHA.
It was established that from the start of operation of the system LITAS-PHA to the end of the business day of 18 May 2008 the fee calculated in accordance with the procedure approved by this resolution shall be applied for the settlement of a payment order of the participant of the system LITAS-PHA addressed to another participant of this system, while the current TARGET fees for cross-border payment orders shall be applied for the settlement of the participant’s payment order addressed to the participant of another component of the Eurosystem’s payment system TARGET2. The fee calculated in accordance with the procedure approved by this resolution for the settlement of all payment orders and the monthly fee of EUR 100 shall be applied to LITAS-PHA participants from 19 May 2008.
The owner and operator of the system LITAS-PHA 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. Also, this system will provide intraday loans, ensuring credit institutions liquidity needed for making settlements.
Participants of the LITAS ?PHA system will be domestic credit institutions and financial brokerage companies planning to make domestic and cross-border settlements in euro via the Bank of Lithuania.
The system LITAS-PHA will start its operation from 19 November 2007.