2006-07-13
1. The Board of the Bank of Lithuania considered the Directions of the Development of the Bank of Lithuania Payment System and endorsed them.
The Board of the Bank of Lithuania considered the Directions of the Development of the Bank of Lithuania Payment System and endorsed them. The purpose of the document was to determine the directions of the development of the Bank of Lithuania payment system until the introduction of the euro.
As defined in the Directions of the Development of the Bank of Lithuania Payment System, two payment systems for settlements in litas are to be developed in the environment of the current payment system LITAS: LITAS-RLS and LITAS-MMS. The expected start of the operation of these systems is January 2007. The systems will cease to operate on the introduction of the euro in the country.
The payment system LITAS-RLS will perform urgent credit transfers in litas among system participants, settlements for securities transactions and the final settlement of the system LITAS-MMS. Intra-day and overnight loans in litas will be granted in the system against eligible collateral. Banks will be able to use the required reserves kept with the Bank of Lithuania for settlements.
The payment system LITAS-MMS will perform non-urgent credit and debit transfers in litas among the participants of the system. The system will also perform the function of the clearing house, i.e. the net balances of system participants will be calculated in it and the final settlement will take place in the payment system LITAS-RLS.
The implementation of the payment systems LITAS-RLS and LITAS-MMS will constitute one of the stages of preparing to link to the Eurosystem payment system TARGET2, as the Bank of Lithuania will use the technical solutions in LITAS-RLS to develop a Proprietary Home Accounting (PHA) system in euro. From the start of linking PHA to TARGET2 the Bank of Lithuania will operate two payment systems for settlements in litas (LITAS-RLS and LITAS-MMS) and PHA for urgent settlements in euro.
The Bank of Lithuania is preparing to use PHA to link to the payment system TARGET2 from the start of its operation on 19 November 2007.
Banks will be able to choose a way of participating in TARGET2 as direct participants, indirect participants or clients of direct participants. Banks participating in TARGET2 will have an additional way of performing settlements in euro for a competitive price. In turn, they will be able to offer better terms for their customers for settling in euro.
The Bank of Lithuania will use PHA for urgent domestic and international settlements in euro: urgent domestic settlements will be performed among banks participating in TARGET2 through the Bank of Lithuania; urgent international settlements will be performed among the above participants and other participants of the TARGET2 system.
Alongside PHA which is dedicated to urgent settlements in euro, given a demand in the market, the Bank of Lithuania provides for the possibility of developing domestic retail payment services in euro.
2. The Board acknowledged that the participants of the Republic of Lithuania Government securities auction - AB bankas “Hansabankas”, AB DnB Nord bankas, AB Sampo bankas, financial brokerage company AB “Finasta”, AB bankas “Snoras”, AB SEB Vilniaus bankas and AB Parex bankas - met the relevant requirements and criteria and performed their obligations.
The Bank of Lithuania performs an annual review of compliance by auction participants with the relevant requirements and criteria, and performance of their obligations.