2012-03-06
Results of the inspection, supervisory review and assessment of AB bankas SNORAS
The Board of the Bank of Lithuania considered a report on the inspection of AB bankas SNORAS and strictly assessed identified shortcomings of the bank performance and violations of legal acts.
The inspection focused on the bank management, internal control, and management of individual risks (credit, liquidity, market and operational).The Board was also presented with the bankas SNORAS supervisory review and assessment results.
The Board of the Bank of Lithuania gave AB bankas SNORAS certain instructions the observance of which would allow to limit the bank's operational risk to a greater extent, particularly the risk on the loans granted by the bank, financial instrument transactions, etc.Certain requirements for the bank capital the implementation of which is obligatory for prudential and stable operations of the bank were also set.
The AB bankas SNORAS Head of Administration was instructed not later than within ten days of the receipt of this resolution to come to the Bank of Lithuania to explain the way by which the bank envisaged to remove the established violations in its operation and implement the instructions given to it by the Bank of Lithuania, and after the expiration of the term for the implementation of these instructions, to explain how they had been implemented.
It was noted at the Board meeting that AB bankas SNORAS had not removed a part of the violations of legal acts and deficiencies in its operation identified during the previous inspection.In view of the above, the Board of the Bank of Lithuania instructed officials of the Credit Institutions Supervision Department to write a protocol of the administrative law violation regarding the violation made by the Head of Administration of AB bankas SNORAS of the administrative law established in Article 1724 of the Republic of Lithuania Code on Administrative Violations of Law (on non-compliance with a written instruction given by Resolution No. 194 of the Board of the Bank of Lithuania of 30 September 2009 to remove the administrative violations of law and the deficiencies in the Bank’s operation indicated in the inspection report).