2012-03-06
The Board of the Bank of Lithuania amended the Rules for the Administration of the Loan Risk Database
Obligation of the Lithuanian Central Credit Union and credit unions to submit information to the Loan Risk Database will be applicable from 2 April 2012. The said decision is envisaged in the amended Rules for the Administration of the Loan Risk Database. The Rules provide for that the said credit institutions shall submit the information about the borrowers and the loans granted to them within 3 months from the start of the application of the said decision.
Another amendment of the Rules envisages an alternative way of the provision of information to the Loan Risk Database through the chosen credit institution. Credit unions intend to provide information to the Loan Risk Database indirectly through the Central Credit Union which would assume the functions of the information provider.
The objective of this database administrated by the Bank of Lithuania is to ensure effective functioning of the credit system and to safeguard the right of the Bank of Lithuania to obtain the necessary information for statistical purposes of supervision and policy related to the stability of the financial system when carrying out the monetary policy functions and providing the preconditions for the Bank of Lithuania and credit institutions to assess the reliability of borrowers by sending to the database the information and obtaining the information from it about loans received by borrowers and repayment of these loans.