Meeting of the Board of the Bank of Lithunia
1. The Board decided that as of 13 November 2000 the following information would be published on the Bank of Lithuania internet site by 9 a.m. on each business day:
· Total required reserves of resident commercial banks in litas and foreign currencies during the current maintenance period;
· Total current account holding of resident commercial banks at the Bank of Lithuania at the end of the previous business day;
· Total average current account holdings of resident commercial banks at the Bank of Lithuania during the previous days of the maintenance period;
· The total amount of currency outside the Bank of Lithuania by the end of the previous business day;
· The total amount of overnight loans granted by the Bank of Lithuania to resident commercial banks by the end of the previous business day.
The resolution was made with the aim of increasing the transparency of the Bank of Lithuania and the stability of the interbank market. Publication of daily data on the reserves in the Lithuanian banking system and maintenance of reserve requirements should increase the stability of the Lithuanian interbank market. The availability of the data about the total accumulation of required reserves will enable the banks to take better management decisions and expand the possibilities of the interbank market.
The publication of this data was supported by the Lithuanian Banking Association.
2. The Board discussed the results of the inspection of Šiaulių Bank. The inspection determined that the Bank complied with all prudential requirements.
The inspection also established that the classification of loans in some cases was not in line with the requirements of the Rules for the Classification of Doubtful Assets. There were certain imprecisions in compiling the Statement on Foreign Currencies although these drawbacks did not have any material impact on the total indicator of the open position. The Bank was instructed to remove the established drawbacks by 1 December 2000.
3. The Board resolved to register the changes in the bylaws of Medicine Bank. These changes are related to the expansion of operations performed by the Bank to include purchase of debt liabilities, cash management and financial intermediation. Other changes are related to widening the shareholders’ non-property rights, the establishment and operations of the Customer Service Department, etc.
4. The Board resolved to abolish the statement form No. 0905 on the currency in foreign banks and cash in banks.
The resolution shall come into force as of 1 January 2001. As of then, the data concerning the domestic currency market will be extracted from form No. 0603 on the sale and purchase of foreign currencies.