2005-08-18
1. On Thursday the Board of the Bank of Lithuania was presented a report on the inspection of Siauliu bankas.
The inspection focused on the Bank’s management, internal control, management of individual risks (credit, liquidity, market and operating risks) and compliance with regulating legislation and the Bank’s internal regulations for the period from 1 June 2004 to 31 May 2005.
2. The Board granted permission to AB Sampo Bank to include the subordinated 7-year loan of EUR 5.213 million (LTL 18 million) received from Sampo Bank plc in Tier 2 capital of the Bank.
Sampo Bank informed the Bank of Lithuania about a subordinated loan agreement concluded with the parent institution Sampo Bank plc under which it received the loan maturing on 28 July 2012. The data presented by Sampo Bank show that the inclusion of the subordinated loan in the capital base will have a positive effect on its compliance with prudential requirements. According to the Bank, the additional interest expenses arising from the subordinated loan will not have any negative consequences to the financial standing of the bank, while the higher capital base will provide opportunities to increase its assets, expand banking activities and ensure compliance with prudential requirements.
3. The Board authorised Siauliu bankas to register amendments to its Articles of Association in relation to the increase of its share capital to LTL 74.720 million, and other changes concerning the number of shares, competence of the Bank’s bodies and the procedures for the election and dismissal of their members.
These amendments were approved at the general shareholders' meeting on 30 March 2005.