2007-08-09
1. Results of the inspection of AB Siauliu bankas
The Board of the Bank of Lithuania was presented the information on the inspection of AB Siauliu bankas.
Siaulių bankas was instructed to remove the violations of legal acts and deficiencies in its operation indicated in the inspection report by 1 December 2007.
The target inspection focused on the bank credit risk management, and the bank management and internal control related to this type of risk.
2. Permission to register changes in the articles of association of AB bankas Snoras
The Board of the Bank of Lithuania gave permission to the AB bankas Snoras to register amendments to its articles of association in relation to the increase of the bank’s authorised capital to LTL 253,354,240.
According to the bank, the increase of the authorised capital will have a positive effect on compliance of the bank with the prudential requirements and allow ensuring security and stability of the bank’s activities.
3. Permission to register changes in the article of association of AB Ukio bankas
The Board of the Bank of Lithuania gave permission to the AB Ukio bankas to register amendments to its articles of association in relation to the increase of the bank’s authorised capital to LTL 196,708,000.
According to Ukio bankas, the increase of the authorised capital will have a positive effect on its activity. The funds of the share issue will strengthen the bank’s capital base and allow better balancing of the bank’s asset and liability composition by term. It is planned that after using the funds of the share issue more income will be earned from the sale of banking products and the financial situation of the bank will be strengthened.
4. Inclusion of the retained profit of AB Sampo bankas for the current year in the bank’s capital
The Board of the Bank of Lithuania was presented information on the inclusion of the retained profit of AB Sampo bankas for the current year in the bank’s capital and did not object to it.
5. Provision of data to the Loan Risk Database
The Board of the Bank of Lithuania was presented information on the provision of data to the Loan Risk Database.
In the environment of rapid credit growth, timely and accurate information is an important precondition for a proper management of credit risk. One of the main information sources used by domestic banks is the Loan Risk Database administered by the Bank of Lithuania, which includes information about debtors submitted by all domestic banks. The Board of the Bank of Lithuania tuned the attention of banks to insufficient quality, comprehensiveness and delay in provision of the information submitted to this database.