Bank of Lithuania

The Credit Institutions Supervision Department submitted information to the Board of the Bank of Lithuania on the results of the inspection of credit unions conducted in the second quarter of this year. Full-scope inspections were carried out in six credit unions: Panevėžio kredito unija, Utenos kredito unija, Kupiškėnų taupa, Žemdirbio gerovė (Šiauliai), Skuodo bankelis and Sveikatos kreditas (Gargždai). Credit unions were inspected in order to verify whether they observed regulatory laws and other legal acts applied to their activities and whether they complied with the prudential requirements. They were also checked concerning the removal of deficiencies identified during the previous inspections. Activities of the management bodies and the financial standing of credit unions where analysed. The management of credit and liquidity risk was also checked. The Credit Institutions Supervision Department also carried out a target inspection of Vilniaus taupomoji kasa credit union.  

The credit unions were instructed to remove shortcomings of the activity and breaches of legal acts identified during the inspection. The managers of Panevėžio kredito unija and Kupiškėnų taupa credit union were invited to the Lietuvos Bankas and were instructed to develop comprehensive plans concerning removal of the identified shortcomings. The Lietuvos Bankas has already had a meeting with the representatives of Panevėžio kredito unija.                

The Board of the Bank of Lithuania have discussed the breaches of legal acts and shortcomings in the activities of Vilniaus taupomoji kasa and Žemdirbio gerovė. Vilniaus taupomoji kasa union was imposed a fine and Žemdirbio gerovė union was imposed temporary restrictions upon some financial operations. The results of the inspection of Sveikatos kreditas credit union will be produced in the immediate future.