2012-03-06
The inspection results of AB “Citadele” bankas and results of supervisory review and assessment
The Credit Institutions Department of the Bank of Lithuania carried out a target inspection of AB “Citadele” bankas (the former name - PAREX BANKAS). Today, the Board of the Bank of Lithuania discussed the results of the inspection.
The inspection checked the issues of bank management and internal control, credit and liquidity risk management, and internal capital adequacy assessment process (ICAAP) in the bank. The Board was informed that during the period of the inspection, the restructuring of AS “Parex banka” Group of Latvia which encompassed PAREX BANKAS was carried out. After the restructuring, as a part of problematic loans of “Citadele” bankas were transferred to the parent bank, the quality of loan portfolio of “Citadele” bankas improved, capital adequacy ratio increased and debt to the parent bank decreased.
The Board of the Bank of Lithuania instructed “Citadele” bankas to eliminate the shortcomings related to the bank risk management systems and other deficiencies identified during the inspection by 31 March 2011.
The Head of the administration of “Citadale” bankas was asked to come to the Bank of Lithuania and explain how “Citadele” bankas is planning to eliminate the established shortcomings in its activity, and later - how it was done.