Participation in the activities of EU institutions
We are involved in the activities of more than 150 committees, working groups and their subgroups established by the Council of the European Union, the European Commission, the European Systemic Risk Board, the Advisory Technical Committee, and the European Supervisory Authority. The Bank of Lithuania partakes in the activities of such major bodies as the Economic and Financial Affairs Council, the Economic and Financial Committee, and the European Systemic Risk Board.
The Economic and Financial Affairs Council (commonly known as the ECOFIN Council) is one of ten configurations of the Council of the European Union, responsible for EU policy in three major areas: economic policy, taxation issues and the regulation of financial services. The ECOFIN Council is made up of economics and finance ministers from all Member States. ECOFIN Council meetings generally take place once a month. Informal ECOFIN Council meetings are held semi-annually in a Member State holding the EU Council presidency.
The Bank of Lithuania and the ECOFIN Council. The Chair of the Board of the Bank of Lithuania, together with the Minister of Finance, attends informal meetings of the ECOFIN Council, which are held semi-annually and chaired by the EU Council presidency. It is an important forum, where the countries’ positions on relevant issues are discussed informally.
The Economic and Financial Committee (EFC) is a political advisory body in the ECOFIN Council set up to promote policy coordination among the Member States. The Committee meets in two different configurations: either only with representatives from the ministries of finance or together with the representatives of national central banks. Meetings with the national central bank representatives take place six times a year. At this Committee, the Bank of Lithuania is represented by the International Relations Department.
European System of Financial Supervision
The Bank of Lithuania is part of the European System of Financial Supervision (ESFS). The ESFS consists of the European Systemic Risk Board (ESRB), responsible for the macroprudential oversight of the EU financial system, and three European Supervisory Authorities, responsible for micro-prudential oversight at EU level.
The ESRB is responsible for the macroprudential oversight of the EU financial systems and the prevention and mitigation of systemic risk. The General Board is the ESRB’s main decision-making body and consists of the following members with voting rights: the President and the Vice-President of the ECB, the governors of the national central banks of the EU Member States, one member of the European Commission, Chairpersons of European Supervisory Authorities, as well as Chairs of the Advisory Technical Committee and the Advisory Scientific Committee. Representatives of national supervisory authorities and the President of the Economic and Financial Committee also participate in the activities of the General Board, although without voting rights.
The Bank of Lithuania and the European Systemic Risk Board. The Chair of the Board of the Bank of Lithuania is a member of the ESRB’s General Board and has a voting right. As a rule, the General Board meets four times a year.
Microprudential supervision is performed by three institutions:
- the European Banking Authority;
- the European Securities and Markets Authority;
- the European Insurance and Occupational Pensions Authority.
Their main decision-making body is the Board of Supervisors, comprised of representatives from a supervisory authority in each Member State and the Chair of the Board of the European Supervisory Authorities.
Representatives from the European Commission, the ESRB and the ECB participate as observers.
The Bank of Lithuania and the European Supervisory Authorities. Representatives of the Supervision Service and the Economics and Financial Stability Service of the Bank of Lithuania take part in the activities of the European Supervisory Authorities, their committees and working groups; they solve issues relevant to the EU financial market and present the position of the Bank of Lithuania in due manner. More information on financial stability in Europe is available here.