2005-06-23
1. The Board of the Bank of Lithuania was presented a report on the inspection of the Central Credit Union of Lithuania on Thursday.
The inspection focused on management, internal control, management of individual risks (credit, liquidity, market and operational risks) and compliance with regulating legislation and the internal regulations of the Central Credit Union.
During the period the Central Credit Union expanded its operations: deposits of credit unions saw marked growth, 5 new credit unions were accepted (there were 53 member credit unions at the time of the inspection). On 28 February 2005 the assets of the Central Credit Union made up LTL 56 million, LTL 444,000 were accumulated in the stabilisation fund, LTL 1,473,000 in the liquidity maintenance fund, and the audited result of the Central Credit Union for 2004 was a profit of LTL 137,000 which, by the decision of the general meeting of the members, was allocated to the compulsory reserve.
During the period of the inspection the Central Credit Union complied with all prudential requirements set by the Bank of Lithuania.
The Central Credit Union of Lithuania informed the Bank of Lithuania that it had removed all shortcomings indicated in the inspection report.
2. The Board of the Bank of Lithuania amended the Rules for the Implementation of the Right to Provide Financial Services in the Republic of Lithuania and Other European Union Member States approved over a year ago.
It was established that upon a request from a bank of the Republic of Lithuania or a financial undertaking under its control for presenting a notification by the Bank of Lithuania to a supervisory authority of a Member State, such a request would be discussed by the Board of the Bank of Lithuania and a decision would be taken only in cases when, in accordance with the Rules, there are reasons why presentation of such a notification to the supervisory authority of a Member State could be declined. If the grounds for such a decline do not exist, the notification would be forwarded without a separate decision of the Board of the Bank of Lithuania.
In addition, the Rules for the Implementation of the Right to Provide Financial Services in the Republic of Lithuania and Other European Union Member States define in detail the cases when the Bank of Lithuania has the right to decline presentation of the notification about the intention to provide financial services in another Member State to the supervisory authority of that Member State. It is provided that the Bank of Lithuania has such a right when the financial situation of a bank does not meet the requirements laid down in legal acts, if provision of investment services is intended under the presented business plan, and the Securities Commission presents its conclusion that the bank is not adequately prepared, etc.
3. The Board decided to announce the 50 litas commemorative coin dedicated to Cardinal Vincentas Sladkevičius legal tender and to issue the coin as from 5 July 2005.
The designer of the new coin is Giedrius Paulauskis.
The coin was minted at the Lithuanian Mint. The mintage of the coin is 2000 pieces.
4. Additional subjects discussed:
The Board gave its consent to Mr Algirdas Butkus, Mr Gintaras Kateiva, Mr Arvydas Salda, the UAB House of Commerce Aiva, AB Alita, UAB Mintaka and the European Bank for Reconstruction and Development to acquire a qualifying holding of the authorised capital and/or voting rights of the AB ?iaulių bankas which would make up a qualified holding of 1/3 of the authorised capital and/or voting rights.