Resolutions of Board of the Bank of Lithuania
Results of the 2015 supervisory review and evaluation process of AB Citadele bankas discussed
The Bank of Lithuania and the Financial and Capital Market Commission of Latvia, which jointly comprise the supervisory college of the Citadele group, discussed the results of the supervisory review and evaluation process of AB Citadele bankas and adopted a joint decision on the Bank’s capital requirements. AB Citadele bankas will have to meet an 11.0 per cent common equity tier 1 capital ratio and a 14.5 per cent total capital ratio: these two also comprise a 2.5 per cent capital buffer requirement applicable to all banks operating in Lithuania as of 30 June 2015. These minimum own funds requirements have been set until a new joint decision will be taken by the supervisory college following a discussion of the results of the next supervisory review and evaluation process. It should be noted that, as of 1 October 2015, AB Citadele bankas had complied with the following requirements.
The supervisory review and evaluation process of banks operating in Lithuania is conducted by the Bank of Lithuania on an annual basis, based on the European Union Capital Requirements Directive IV, implemented in Lithuania, and in cooperation with the supervisory authorities of other countries. During this process, not only banking activities, financial standing of banks, compliance with prudential requirements are evaluated; the requirement of individual additional capital, necessary for covering pillar 2 risks (i.e. risks that are not covered by the capital adequacy requirements), is also established.
Once the supervision of banks operating in Lithuania became part of the Single Supervisory Mechanism, respective decisions regarding the results of the supervisory review and evaluation process in the three largest banks — AB SEB bankas, Swedbank, AB, and AB DNB — are taken at international supervisory colleges by the European Central Bank in close cooperation with the Bank of Lithuania. Decisions regarding the results of the supervisory review and evaluation process of banks operating in Lithuania which are not part of foreign bank groups are taken by the Board of the Bank of Lithuania.