2006-10-12
1. On inclusion of subordinated loan in the capital of AB SEB Vilniaus bankas
The Board of the Bank of Lithuania gave permission to SEB Vilniaus bankas to include a subordinated loan of EUR 42 million (LTL 145.018 million) received from the Swedish bank Skandinaviska Enskilda Banken after the latter paid for the subordinated loan bonds issued by SEB Vilniaus bankas into Tire 2 capital.
Such permissions are granted when the subordinated loan does not have a negative impact on the financial standing of the bank and meets the conditions for inclusion of such loans in bank capital.
Upon receiving permission to include the new subordinated loan in Tier 2 capital of the bank, the capital base (the recalculated bank capital) of SEB Vilniaus bankas would rise to LTL 1.395 billion, according to the data for 1 October.
It is expected that after the inclusion of the subordinated loan in the capital base of SEB Vilniaus bankas the effect on the capital adequacy ratio and other prudential requirements will be positive. The Bank has stated that its capital base would strengthen, leading to the improvement of related indicators and better conditions for the further development of the banking business. Taking into account the potential use of the new funds for credit, this could also have a positive impact on the Bank’s income.
2. On the inclusion of the profit for the current year in the capital of AB Sampo bankas and the capital of the financial group of AB Sampo bankas
The Board of the Bank of Lithuania gave permission to AB Sampo bankas to include part of the unallocated profit earned in the first half of the year in the Tier 2 capital of the Bank and its financial group (LTL 3.908 million for the Bank and LTL 4.191 for the financial group), the amount of this profit being confirmed by an independent audit company.
3. On granting permission to register changes in the Article of Association of DnB NORD bankas
The Board of the Bank of Lithuania gave permission to the AB DnB NORD bankas to register amendments to its articles of association in relation to the increase of the Bank’s authorised capital to LTL 311,735,790, adopted at the extraordinary general shareholders’ meeting on 10 July 2006 as amended at the Board meeting of 26 September 2006.
At the moment, the authorised capital of DnB NORD bankas is LTL 283,396,340.
The authorised capital of the Bank is being raised in order to strengthen its capital base and improve its capital adequacy ratio.
4. On granting permission to the Balkan Investment Bank AD Banja Luka to open a representative office in Kaunas, Republic of Lithuania
The Board of the Bank of Lithuania granted permission to the Balkan Investment Bank AD Banja Luka (Bosnia and Herzegovina) to open a representative office in Kaunas.
The Bank’s application indicated that the purpose of the representative office would be to serve as an intermediary in building economic relations between the economic entities of the Republic of Lithuania and Bosnia and Herzegvina, etc. The representative office will be engaged in market research in the Republic of Lithuania, information activities in relation to the services provided by the Bank, search for new clients, etc.