Foreword

As part of the Eurosystem, Lietuvos bankas, together with the ECB and other euro area central banks, makes monetary policy decisions and participates in their implementation. The year 2024 marked a major change in the Eurosystem’s monetary policy. Amid growing confidence that inflation is steadily converging towards the monetary policy target, the Governing Council of the ECB cut key interest rates in June. The rate cuts continued in September, October and December, as well as in early 2025.

These decisions are in line with the Eurosystem’s main medium-term objective of maintaining price stability in order to keep inflation in the euro area at 2% over the medium term. Monetary policy decisions were in all cases made following a data-dependent approach in view of a downward trajectory of inflation. It is projected to return to the target level as early as 2025, which could lead to further interest rate cuts. Decisions will be made at each ECB Governing Council meeting in the light of all available data.

The Eurosystem’s monetary policy developments also have a positive impact on the Lithuanian economy, which remains resilient to external shocks. After a two-year hiatus, the Lithuanian economy has returned to growth, with GDP growing by 2.7% in 2024 and average annual inflation falling to 0.9%.

Lithuania’s financial stability is sound. Geopolitical tensions, rising borrowing costs and a slowdown of economic activity in the euro area pose risks, but the overall background has improved. Capital buffers of banks are supported by increased profitability, loan quality remains good, and stress tests indicate that the banking sector would be able to withstand particularly adverse economic development scenarios.

In the autumn of 2024, Lietuvos bankas took part in a financial crisis simulation exercise together with institutions from the Nordic and Baltic countries to test its preparedness for a potential crisis situation. This experience will contribute to strengthening the crisis management framework and cooperation in the region.

In the second half of 2024, with the rise in cyberattacks aimed at disrupting the availability of banking services, we strengthened our operational resilience through cyber resilience tests, consultation events and closer cooperation with the National Cyber Security Centre and European partners.

Excess liquidity and funding costs, which rose much more slowly than interest income, resulted in the Lithuanian banking sector being one of the most profitable in the EU, thereby increasing resilience to potential shocks. The Lithuanian banking sector’s profit in 2024 was around €1.021 billion, with a return on equity of 20.2%.

The Republic of Lithuania Law on Temporary Solidarity Contribution, drawn up by Lietuvos bankas in cooperation with the Ministry of Finance in 2023, was extended for one year until 31 December 2025 by a decision of the Seimas made in June 2024. Since the entry into force of the Law, the contribution to the national budget has totalled around €450 million to finance Lithuania’s military mobility and military infrastructure projects, and the entire amount for 2023–2025 could reach €580-590 million.

2024 was also a good year for Lietuvos bankas: with successful management of financial assets we generated a profit of €143.7 million and made a record profit contribution of €130.0 million to the state budget. The amendments to the Republic of Lithuania Law on the Bank of Lithuania on profit allocation initiated by the President and approved by the Seimas made an important contribution to the financing of state needs.

Other financial market sectors are also in good shape. The credit union and insurance sectors, management companies and financial brokerage firms are stable and profitable, the market for electronic money and payment institutions is growing, and the activities of consumer credit providers, crowdfunding, pension funds and collective investment undertakings are expanding.

Ensuring public benefit is an important strategic direction of Lietuvos bankas. We put forward proposals to address market imperfections and promote effective and healthy competition. We adopted decisions on the optimal composition and price of the basic payment account service package, initiated legislative amendments to make the housing loan refinancing process simpler and cheaper and to provide a realistic option to choose a fixed or variable interest rate for a housing loan.

Residents who use the basic payment account service package can now withdraw more money from ATMs and make more payment transfers, while the package itself costs a third less. This scope of services meets the needs of 90% of account holders in Lithuania.

In September, we put forward proposals to ensure that consumers can choose the payment services that are relevant for them, without bundling or grouping with other services. We plan to keep going and will keep coming up with ideas to give people more options for financial services that they need and find useful.

In response to falling loan margins ahead of the entry into force of the simplified housing loan refinancing regime on 1 February 2025, residents were more active in negotiating more favourable terms for their existing loans. According to our estimations, around 8% of the total housing loan portfolio was renegotiated in 2024.

In order to increase housing affordability in the long term, which has not yet returned to the pre-pandemic level, Lietuvos bankas conducted an affordability analysis and published its results. Based on the results of the analysis, we propose four groups of measures related to the sustainability of housing demand, supply flexibility, relevant public support and targeted housing policy. We also held an inter-institutional discussion with stakeholders to discuss the results and insights of the study.

We encourage people to pay more attention to the most crucial issues of personal finance management. The Centre for Financial Literacy, which was set up earlier, launched the Decide for Yourself information campaign in July 2024. It urges people not to overpay for financial services and take advantage of opportunities to increase their savings.

On our website, we publish comparative information relevant to residents: payment service fees, calculator of unit-linked insurance deductions, interest rates on time, cumulative and irrevocable deposits, and we have started developing a housing loan calculator.

We are actively involved in fraud prevention. We encourage financial market participants to put in place advanced fraud prevention measures to prevent fraud attacks and resulting losses of both individuals and businesses. The Centre for Financial Literacy actively educates the public on how to identify fraud.

To achieve one of its strategic objectives, i.e. the maturity of the financial sector, Lietuvos bankas hosts consultation events on market supervision. Eighteen events were held in 2024, with a record turnout of 4,300 participants. The most relevant issues are those related to the prevention of fraud and money laundering and terrorist financing.

Experts of Lietuvos bankas also gave presentations on financial market supervision at the Whistleblower Protection event and the conference “Illicit Finance: A Joint Response” of the Center of Excellence in Anti-Money Laundering as well as at the workshop of Nasdaq Vilnius Stock Exchange for listed issuers.

In 2024, we actively prepared for the entry into force of the EU Markets in Crypto-Assets Regulation on 30 December 2024. We informed market stakeholders about the upcoming changes and we aim to ensure that only mature service providers with a good understanding of the risks involved in this business enter the crypto-asset market.

We are consistently contributing to the EU’s climate neutrality and low-carbon economy targets. Our goal is to make the financial assets of Lietuvos bankas not related to monetary policy climate-neutral by 2050 at the latest. When investing foreign reserves, we prioritise green investments and mitigate climate-related risks where this is consistent with the principles of investment security, liquidity and return.

Gediminas Šimkus

Chair of the Board of Lietuvos bankas

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1.Strategy and objectives

Following the introduction of integrated strategic planning principles at Lietuvos bankas in 2023, the bank fully transitioned to the principles of mission-driven strategy development and governance in 2024.

Our mission is to bring benefits to society while seeking to foster a reliable financial system and ensure sustainable economic growth. To carry out the mission, Lietuvos bankas relies on highly qualified employees as well as the necessary financial and technological resources.

The common purpose of the employees of Lietuvos bankas is ensuring a reliable financial system and safe money. As a purpose-driven organisation, Lietuvos bankas performs the functions laid down in the Republic of Lithuania Law on the Bank of Lithuania and participates in implementing the euro area monetary policy with other members of the Eurosystem.

The vision of Lietuvos bankas is to be an innovative, proactive, and open Eurosystem central bank. Together with the 19 central banks of the euro area and the ECB, Lietuvos bankas is part of the Eurosystem. Lietuvos bankas participates in the activities of the ECB, the leading institution of euro area central banks responsible for the development and implementation of the monetary policy in the euro area.

The activities of Lietuvos bankas are based on values, such as the value to society, accountability and continuous progress.

The strategic objectives and their value to stakeholders are published on the website of Lietuvos bankas, and the results of their implementation are presented in other sections of the report.

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2.Economic and financial overview

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2.1.Real economy

The increasing purchasing power of households and gradually recovering external demand boosted economic recovery in Lithuania. After two years of stagnation, in 2024 the Lithuanian economy returned to growth. Lithuania’s GDP in 2024 increased by 2.7% compared to 2023. GDP growth was largely driven by a rebound in consumption, supported by more favourable export developments, while investment, in contrast, contracted in 2024 and put downward pressure on GDP.

With inflation subdued, a favourable labour market situation and positive household sentiment fuelled the recovery in household consumption, which grew by 3.7% over the year and was the main contributor to Lithuania’s GDP growth. Since inflation was subdued and wages still rose at a double-digit pace, the purchasing power of households grew strongly in 2024. Real wages were the main contributor to the strong growth of disposable income which, according to Lietuvos bankas estimates, stood at 8.2% in 2024. In addition to significant income growth, consumption development benefited from the good labour market situation and positive consumer expectations. The EC’s consumer confidence indicator for Lithuania improved in 2024, reaching its highest level since the global financial crisis in the second half of the year and significantly outperforming other EU countries.

With external demand gradually recovering, exports of goods and services grew slightly and were 0.3% higher than a year ago. While exports of services grew, exports of goods continued to decline. Export growth was mostly constrained by declining re-exports, which were negatively affected by a further decline in exports to the Commonwealth of Independent States (CIS) due to restrictions imposed and a decline in exports of mineral products. With such dynamics in re-exports and exports of mineral products, a more significant decline in total exports of goods was prevented by the favourable development of exports of non-mineral goods of Lithuanian origin, which were noticeably supported by recovering external demand. The recovering chemical industry was among the industries that had a positive effect on exports of non-mineral products of Lithuanian origin, with increased exports of reagents, nitrogen and phosphorus fertilisers, and polyethylene terephthalate (PET).

Investments, which grew by nearly a tenth in 2023, contracted by 1.1% in 2024. Although growing exports of non-mineral products of Lithuanian origin supported the industrial recovery, which in turn increased the utilisation rate of production capacities, they remained below the long-term average and limited investment growth. Investments in vehicles fell significantly last year. They were particularly affected by the transport overcapacity on the EU market in 2023, lower transport prices and tighter monetary policy. Although investments contracted in 2024, their overall level remained high, with the investment-to-GDP ratio significantly above the long-term average.

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2.2.Price dynamics

Average annual inflation in Lithuania declined for the second consecutive year to 0.9% in 2024, following a drop in the prices of energy and various other commodities. Annual inflation fluctuated in 2024. After changing direction several times, it reached its lowest point in almost four years (0.1%) in October and rose steadily during the remaining months of the year. The main contributor to annual inflation fluctuations was the changing effect of falling energy prices. Prices of food, including alcoholic beverages and tobacco, and industrial goods had a minimum impact on annual inflation, while the prices of services were the main driver of inflation.

With lower food commodity prices, prices of food, including alcoholic beverages and tobacco, rose at an average annual rate of 0.9% in 2024 (13.4% in 2023), contributing most to the decline in average annual inflation. The price increase in the above-mentioned product group was mainly supported by a sharper annual rise in the prices of alcoholic beverages and tobacco products, which are products whose consumption is being discouraged. Specifically, food products were on average 0.2% cheaper in 2024 than a year earlier. This was due to easing pressure on prices in the food supply chain: in 2024, farm-gate prices of agricultural products in Lithuania fell by 2.8% over the year, food producer prices on the domestic market went down by 0.5%, while prices of imported food remained unchanged. However, price trends of individual food product groups were not uniform. Among the food product groups that saw the most significant price declines were oils and fats, and vegetables, while meat and fruit prices rose slightly.

With prices of energy resources continuing to fall, energy prices for consumers declined at a faster average annual rate (9.6%) in 2024 and had a downward effect on inflation throughout the year. All energy goods were cheaper in 2024, with the biggest impact on energy prices coming from the fall in electricity prices, which were around a quarter lower than the year before. Increasing domestic electricity generation and lower gas prices on the market contributed to lower electricity prices on the market and, consequently, cheaper electricity for consumers.

Prices of services rose at a slower albeit still rapid pace (6.1%) and were the main driver of inflation. The dynamics in service prices were significantly affected by the continued rapid growth in wages, as wage costs account for a significant share (around 42%) of total service provision costs. Catering services are worth mentioning in the context of the structure of service price growth. They rose by nearly a tenth over the year and accounted for about a quarter of the total increase in service prices.

With the easing of pressure on industrial goods prices, their growth slowed to 0.9% in 2024, contributing significantly to the decline in average annual inflation. The easing of pressure on industrial goods prices was visible at all stages of the supply chain. For instance, producer prices for manufacturing, excluding refined energy products, on the domestic market were 3.3% lower in 2024 than a year earlier, prices of imported durable goods also fell slightly, while prices of imported non-durable goods rose at a slower pace of 1.4%. This led to many industrial goods being cheaper in 2024 than a year earlier, with the most significant price increases observed for pharmaceutical products which cost around a tenth more than a year earlier.

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2.3.Labour market

The number of permanent residents in Lithuania has increased for three consecutive years. According to provisional data, Lithuania’s population grew by 4,300 people per year to reach 2.89 million at the beginning of 2025. The increase in population was due to positive net immigration of both Lithuanians and foreigners. In 2024, 23,000 more people arrived in Lithuania than left. Net migration of Lithuanian citizens was the highest since the beginning of the data publication: it was positive for the fifth consecutive year and amounted to 9,000 persons in 2024. Net migration of foreigners was around 13,000 people. Net migration from Central and South Asian countries accounted for the largest share of the migration balance (around 10,000, or almost three-quarters of the total net migration of foreigners), but declined by two-fifths over the year. Still, this migration balance was sufficient to offset the negative population change. In 2024, about 19,000 more people died in Lithuania than were born.

As economic activity grew, companies increased the number of employees. Over the year, the total number of employed persons in Lithuania rose by almost 23,000 (1.6%). The highest employment growth was recorded in the industrial sector, mainly in manufacturing. Employment developments in Lithuania were particularly negatively affected by difficulties in the transport sector. The sluggishness of the EU economy and transport overcapacity in Western markets contributed to the sector’s stagnation.

The rise in unemployment at the start of 2024 gradually subsided. According to the estimates of the State Data Agency, the average unemployment rate in Lithuania in 2024 was 7.1%, up by 0.3 percentage points year on year, mainly due to an increase in the working-age population. However, based on seasonally adjusted quarterly data, the unemployment rate declined for the third consecutive quarter and stood at just 6.3% in the fourth quarter of 2024. This is the lowest unemployment rate in two years.

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3.Monetary policy of the Eurosystem

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3.1.Decisions

In June 2024, the Governing Council of the ECB began easing the restrictive monetary policy stance. This was the first change in interest rates since the cycle of interest rate hikes of 2022–2023 and the 4% level which remained unchanged for nine months. Over the course of 2024, the Governing Council of the ECB cut the key (deposit facility) rate by a total of 100 basis points four times. The decisions were taken in the light of the dynamics of euro area core inflation at the time, inflation projections and monetary policy transmission. Declining inflation provides reassurance that the price stability objective will be achieved with a less restrictive monetary policy stance. Moreover, following the fading of the risks associated with the COVID-19 pandemic to the monetary policy transmission and outlook for the euro area economy, the Eurosystem has suspended reinvestments under the Pandemic Emergency Purchase Programme (PEPP) from the beginning of 2025, which has led to a further decline of the bond portfolio holdings.

In the medium term, the interest rates of the ECB should reach a level where the monetary policy stance is neither restrictive nor stimulating, provided that the economy faces no new shocks. Financial market participants expect interest rates to stabilise around 2% as inflation approaches the target level. However, the Governing Council of the ECB will follow a data-dependent and meeting-by-meeting approach.

The latest projections suggest that inflation in the euro area is getting back to the ECB’s medium-term target of 2%, and that economic growth should slightly pick up. In February 2025, inflation in the euro area fell to 2.4% since it went over 10% in October 2022. Although inflation is currently still above the ECB’s price stability target, it is expected to reach around 2% in the second half of 2025 and be close to this target next year. This will be driven both by the impact of past interest rate hikes and slowing growth of compensation per employee next year. According to preliminary estimates, the euro area economy grew by 0.8% in 2024, but the recovery is expected to be slow. Since the previous September projections, the unemployment rate projections have been revised downwards and will remain at historically low levels.

(annual percentage change, excluding the unemployment rate)

Indicators	2024	2025	2026	2027
Real GDP	0.8	0.9	1.2	1.3
HICP	2.4	2.3	1.9	2.0
Unemployment rate	6.4	6.3	6.3	6.2
Compensation per employee	4.6	3.4	2.8	2.6

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3.2.Instruments

In 2024, the Eurosystem carried out 116 open market operations. Through the main refinancing operations (MROs), which had a one-week maturity, counterparties of the Eurosystem borrowed €16.98 billion at the end of the year (compared to €14.09 billion at the end of 2022), while through longer-term refinancing operations they borrowed €17.19 billion (compared to €396.20 billion at the end of 2023, including targeted longer-term refinancing operations (TLTROs), which were completely repaid in 2024). Counterparties also continued to actively use the overnight deposit facility. The use of the deposit facility decreased slightly over the year, amounting to €2,799.01 billion at the end of 2024 (compared to €3,446.57 billion at the end of 2023).

In 2024, counterparties of Lietuvos bankas also participated in main refinancing operations, but at the end of the year had no borrowings, just like at the end of 2023. In addition, counterparties had no borrowings under longer-term refinancing operations at the end of the year (compared to €478.81 million borrowed at the end of 2023). Counterparties of Lietuvos bankas, like those of the Eurosystem, made use of the overnight deposit facility, with the amount of such deposits standing at €12.73 billion at the end of the year (compared to €11.03 billion at the end of 2023).

During the period under review, the Eurosystem’s monetary policy securities portfolio decreased because the Eurosystem no longer conducted purchases under the expanded APP and gradually phased out reinvestments under the PEPP. Under the PEPP, all funds received for redeemed securities were reinvested fully in the first half and partially in the second half of 2024, while reinvestments under this programme were terminated at the end of 2024. At the end of the year, Eurosystem’s monetary policy securities portfolio stood at €4,290.49 billion, down by €403.85 billion compared to the end of 2023.

The monetary policy securities portfolio of Lietuvos bankas also decreased by €1.03 billion to €10.75 billion at the end of the year, of which €6.23 billion consisted of securities issued or guaranteed by the Republic of Lithuania and €4.52 billion consisted of bonds issued by European institutions.

Indicator	Region	Volume at the end of the year, EUR	Annual change	Annual average, EUR	Highest value, EUR	Lowest value, EUR
Minimum reserves	Eurosystem	164.0 billion	1.0%	162.2 billion	164.0 billion	161.3 billion
	Lithuania	509.0 million	12.2%	475.5 million	509.0 million	453.5 million
Current account holdings	Eurosystem	192.3 billion	3.2%	168.4 billion	281.8 billion	136.3 billion
	Lithuania	573.2 million	0.2%	559.7 million	1,765.3 million	418.2 million
Recourse to deposit facility	Eurosystem	2,799.0 billion	18.8%	3,168.2 billion	3,567.2 billion	2,769.0 billion
	Lithuania	12.7 billion	15.4%	10.3 billion	12.9 billion	8.7 billion
Recourse to marginal lending facility	Eurosystem	0.048 billion	80.0%	0.0 billion	0.3 billion	0.0 billion
	Lithuania	0.0 million	0.0%	0.0 million	0.0 million	0.0 million

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3.3.Impact

Interest rates on private sector loans have been declining significantly in response to loosening monetary policy. A steady decline of new lending rates, which replaced their rapid rise in 2024, is increasingly evident in interest rates on both housing and NFC loans in Lithuania and the euro area. This was driven by the ECB Governing Council’s decisions to lower interest rates and expectations of further rate cuts in the future. In Lithuania, interest rates on new housing loans are still above the euro area average (4.31% in Lithuania and 3.43% in the euro area as of December 2024). The difference is partly explained by the fact that almost all housing loans in Lithuania (around 97%) have variable interest rates (usually 3, 6 or 12-month EURIBOR), while the euro area average is much lower (around 18%). As a result, Lithuanian borrowers were immediately exposed to higher interest rates, while most euro area borrowers were only affected later, when expectations of the longer-term direction of interest rates changed. This difference therefore gave rise to the currently faster decline of new borrowing rates in Lithuania. Since June 2024, when the ECB Governing Council started to lower the deposit facility rate, interest rates on housing loans have fallen by around 1.21 percentage points in Lithuania and merely around 0.38 percentage points across the euro area. The future dynamics of interest rates on loans will depend on the nature of monetary policy and financial situation of the economy and banks.

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4.Financial stability

As the ECB cuts interest rates, the risk landscape for Lithuania’s financial system in 2024 is brightening, but geopolitical tensions, potential trade wars and persistent economic uncertainty, the continued risk of a correction in commercial real estate prices, and the growing danger of cyberattacks pose threats. Both European and Lithuanian economies have shown signs of recovery driven by accelerating private consumption and expansion of the services sector, but the financial stability of countries could be affected by various macroeconomic and geopolitical challenges in the future. The financial situation of Lithuanian companies may be affected by the risks of geopolitical shocks and potential trade wars as well as by sluggish growth trends of foreign trading partners. On the other hand, risks to the financial system are mitigated by low levels of non-performing loans to non-financial companies and their accumulated reserves. As risks in the housing market recede, the risk level in the commercial real estate segment remains higher due to an excess supply of office and industrial premises. Despite these pressures, the continued high credit quality of commercial real estate should safeguard the financial system from any significant impact due to potential bank losses. At the same time, the risk of cyberattacks of systemic nature remains elevated. While significant financial or reputational damage has been avoided so far, banks and supervisory bodies are constantly focusing on building resilience to attacks of systemic nature and their prevention.

(Q1 2004 to Q4 2024)

The financial cycle in Lithuania showed signs of recovery in 2024, with clear trends of recovery and acceleration of credit to businesses and households. Overall, there are no imbalances in the credit market. The financial cycle index in Lithuania has rebounded from its previous lowest level. This change was mainly due to a pick-up in demand for loans as a result of falling interest rates. In December 2024, the annual growth rate of the loan portfolio was 9.7% for households and 13.3% for businesses. Both new lending and the number of renegotiations grew at an accelerating pace. In 2024, the flow of new loans to businesses and households was 11.4% and 27.9% respectively higher than in the previous year. In 2024, the value of renegotiated housing loans represented 8.6% of the total housing loan portfolio and grew by 5 percentage points over the year. Stronger competition between banks before the simplified housing loan refinancing procedure came into force contributed significantly to this growth. Overall, the debt level of businesses and households has remained low, with the ratio of bank loans to GDP (36.5%) remaining one of the lowest in the euro area.

The housing market has accelerated in the face of falling borrowing costs, but the commercial real estate segment continues to show low market activity and rising vacancy rates for office and industrial premises. In January 2025, the number of dwellings reserved on the primary market reached a four-year high. However, based on the number of officially registered transactions, market activity is still around 10% below the trend of the last decade. Annual price growth has been stable, ranging from 3.6% to 8.9% at the end of 2024 based on different indices. With personal incomes rising faster than house prices for two years, housing affordability continues to improve, and the overvaluation of house prices, based on the median of different indices, ranged between 4% and 9% in the third quarter of 2024. At the same time, the number of transactions in the commercial real estate segment at the end of 2024 was 24% lower than a year earlier. The lower market activity also leads to slower price rise (6.8% in the fourth quarter of 2024, compared to 9% annual growth in the previous quarter). While debt servicing challenges are easing on the back of lower borrowing costs, tensions persist over the excess supply of office and industrial premises: the vacancy rate for Class A office and Class A industrial premises in Vilnius rose to 12% and 6% respectively by the end of 2024 (from 9% and 2% in the third quarter of 2024). However, the financial buffers accumulated by real estate companies reduce the likelihood of risk realisation.

Preventive financial stability measures of Lietuvos bankas help to ensure that the financial system is able to withstand shocks. Capital instruments were regularly reviewed in 2024. On 1 July 2024, the decision adopted in December 2023 to increase the additional capital requirement for Revolut Bank UAB from 1% to 2% due to its increased systemic importance came into force. A review of the sectoral systemic risk buffer was carried out in the autumn of 2024. In view of the renewed activity in the housing credit market and the continued importance of housing loans for some market participants, it was decided to maintain the 2% sectoral systemic risk buffer for credit institutions’ portfolios of housing loans exceeding €50 million, which will help maintain the resilience of credit institutions to risks stemming from this sector.

Lietuvos bankas, together with the Ministry of Finance, has submitted amendments to the Republic of Lithuania Law on Real Estate Related Credit to broaden options for consumers to choose the type of housing loan interest and encourage more active refinancing of housing loans or review of the contractual terms (especially the margin). On 17 October 2024, amendments to this law were adopted facilitating the refinancing procedure for housing loans: once every two years, every housing loan borrower will be able to benefit from a simplified and free-of-charge refinancing procedure to find the best loan offer. Simplified refinancing is already available to consumers as of 1 February 2025. According to the amendments to the same law adopted by the Seimas, from 1 May 2025 credit issuers with significant housing loan portfolios (exceeding €50 million in value) will have to provide at least two alternative loan offers when offering housing loans to consumers: one with a variable rate and the other with at least a 5-year fixed rate.

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5.Management of financial assets

In managing financial assets, Lietuvos bankas seeks to ensure the stability of the financial system, create conditions for smooth monetary policy implementation, ensure financial independence and provide a buffer against economic shocks.

In 2024, the bulk of Lietuvos bankas investments was in the US dollar or other currencies (Japanese yen, US dollar, Canadian dollar, Swiss franc, British pound sterling) with hedged currency risk. Aiming at higher investment diversification, the currency risk of some investments (78% on average in 2024) was not hedged. The majority of investments with unhedged currency risk were in the US dollar (36%), Canadian dollar (7%) and British pound sterling (10%).

The security of financial assets is ensured through diversifying investments, concluding transactions with high investment rating financial institutions that are of good repute, and investing only in debt securities with a high investment rating. The investment grade rating assigned to financial institutions and issuers of debt securities by international rating agencies indicates low probability of default on their liabilities. At the end of 2024, 54% of investments were rated AAA (the highest rating).

In terms of financial instruments, the majority of investments made in 2024 were in government bonds and money market instruments. Lietuvos bankas invested in securities issued by various governments, government agencies, international organisations and municipalities. Money market instruments mainly consisted of deposits with other central banks and international organisations. Lithuania’s gold is held at the Bank of England. Under favourable market conditions, gold is invested in gold deposits, thus earning interest, or through gold swaps, i.e. temporarily exchanging gold into other currencies and then investing them.

Lietuvos bankas invests financial assets with the aim of diversifying risk and increasing expected return over a three-year investment horizon. Due to potentially higher yields in the medium term, Lietuvos bankas tolerates the risk of short-term loss, the size of which, with high probability, should not exceed the risk budget predefined in its investment policy.

At the end of 2024, financial assets of Lietuvos bankas not related to monetary policy operations and excluding liabilities amounted to €7,888 million. The return on this asset in euro terms (adjusted for exchange rate changes but non-adjusted for gold price changes) stood at 6.49%. The return on financial assets excluding liabilities and not related to monetary policy operations (non-adjusted for exchange rate and gold price changes) was 3.50% in 2024.

Gold reserves remained unchanged and amounted to 5.8 tonnes. The return on the gold portfolio reached 32.95% in 2024. The latter changes were strongly affected by the significant increase in the gold price over the year (27.22%) and by the strengthening of the US dollar by more than 6% against the euro.

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6.Supervision

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6.1.Financial market participants

Lietuvos bankas supervises 825 financial market participants (FMPs). Reviews of the activities of FMPs and information about their performance indicators are published on the website of Lietuvos bankas.

In 2024, 35 new FMPs entered the financial sector. 15 licences and authorisations were issued to EMIs, PIs, financial brokerage firms, management companies, crowdfunding providers and credit administrators. 20 entities (intermediaries of EMIs and PIs, intermediaries of management companies and financial brokerage firms, consumer credit providers, credit administrators, etc.) were included in the public lists. Lietuvos bankas has been providing the electronic licensing service: all companies are able to take care of the necessary paperwork and procedures electronically.

Dalintis:

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6.2.Prudential supervision

Dalintis:

In 2024, credit unions continued to increase their business volume, met all prudential requirements and operated profitably. In the credit union sector, deposits grew strongly, while loans increased more moderately. The sector’s assets went up by almost 13% to €1,586.2 million on 1 January 2025. Credit growth was the main driver of the sector’s performance, but the increase in the cost of funding resources and the fall in interest rates on loans resulted in lower profits in 2024 than a year ago. In 2024, 59 credit unions operating in Lithuania generated unaudited profits of €14.4 million, down by €3.2 million compared to 2023.

Although the number of EMIs and PIs decreased compared to 2023, the market continued to grow in terms of turnover, revenue, and other financial indicators; the net profit of these institutions amounted to €117 million. Due to higher interest rates and the higher yield of debt securities, EMIs and PIs invested more customer funds in safe, liquid, and low-risk assets. Income from licensed activities increased by 25% over the year to €622.3 million. There was a significant pick-up in the amount of payment transactions, with a 33% increase to €151.6 billion in 2024 (€113.7 billion in 2023). The five largest market participants in terms of payment transactions generated more than half of the sector’s turnover (53%), while the five largest EMIs and PIs in terms of income from licensed activities earned 42% of all sector revenues. At the end of 2024, all institutions met the own funds requirements, but eight institutions were only fractionally above the required capital adequacy ratio.

Dalintis:

In 2024, the Lithuanian insurance market saw a weaker growth of premiums and benefits, with all insurance undertakings operating profitably and meeting the mandatory solvency capital requirements with sufficient margin. As at 31 December 2024, the solvency ratio of life insurance undertakings was 1.94 and that of non-life insurance undertakings stood at 1.52. According to unaudited financial statements, the aggregate financial result of all insurance undertakings (before tax) amounted to €99.2 million (up by more than 30%). All insurance undertakings were profitable in 2024. In 2024, premiums and claims amounted to €1.58 billion and €0.89 billion respectively, up by 9% and 9.6% respectively (compared to 2023, the growth of premiums and benefits slowed down by 9%). Non-life insurance continues to dominate the insurance market, accounting for 77% of total premiums. Non-life premiums increased by 10.4% to €1.2 billion, with all types of premiums growing, but at a much lower rate than a year ago. The 11.8% increase in claims (to €0.68 million) was driven by a rise in insurance claims for motor third-party liability, CASCO and medical expenses. The life insurance market grew at almost the same pace as a year ago, with premiums increasing by 4.5% (to €370 million), mainly driven by the amounts paid under unit-linked life insurance contracts. Claims rose by 3.1% (to €205.7 million), mainly due to a faster growth in partial payments under unit-linked life insurance compared to a year earlier. As at 31 December 2024, there were 105 insurance brokerage firms and 2 branches operating in the insurance market, of which 90 were profitable.

Dalintis:

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6.3.Financial services and market supervision

Pension funds and collective investment undertakings (CIUs) recorded positive returns, with an increase in accumulated assets and the number of contributors. Proposals were put forward to protect pension scheme members when investing in the alternative class market, such as strengthening internal controls of investee companies, description of the membership policy, recommendation to have criminal insurance and compulsory professional indemnity insurance. Moreover, the review of the second pension pillar presents and analyses the development of Lithuania’s second pension pillar over the last twenty years, foreign practices and demographic challenges, and proposes structural changes.

The number of alternative investment CIUs continued to grow in 2024. Over the year, 25 new CIUs for informed investors (CIUFIIs) and one special CIU were established.

The market for crowdfunding service providers also grew. Changes in the regulation of the market for crowdfunding service providers did not dampen interest in alternative lending: 500,000 deals were concluded in 2024 and €278.4 million in funding was provided for projects. In 2024, the number of this type of service providers increased to 15 (up by 3 from 2023), and one FMP began to provide these services by offering bond financing.

Dalintis:

In 2024, the number of management companies (excluding CIUFIIs) remained unchanged, while the number of financial brokerage firms went up. Assets of management companies declined by 21%, whereas assets of financial brokerage firms increased steadily.

Dalintis:

The portfolio of consumer credit providers (non-credit institutions), including peer-to-peer lending platform operators, grew by 11% in 2024, reaching €1.19 billion by the end of the year. Consumer credit providers are facing legal changes. The Ministry of Finance has drawn up the Draft Law Amending the Law on Consumer Credit to transpose Directive (EU) 2023/2225 of the European Parliament and of the Council on credit agreements for consumers and repealing Directive 2008/48/EC into national law by 20 November 2025. The scope of Directive 2023/2225 is being extended (e.g. it will apply to hiring or leasing agreements with an obligation or an option to buy the property), changes to the requirements for information to consumers are being introduced, along new advertising requirements, principles of business ethics for creditors, etc.

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6.4.Supervisory action and consultancy

In carrying out supervision, Lietuvos bankas aims for high-quality services for consumers and maturity of market participants. The licensing process takes into account the readiness of FMPs to provide financial services, while with the significant extension of the functions of Lietuvos bankas (MiCA, DORA regulations) one of the main objectives is to ensure the entry of mature FMPs into the market. Lietuvos bankas continues its ongoing cooperation with FMPs, responds to their needs, organises consultation events, takes action to tackle financial fraud, strengthens AML/CTF supervision and the implementation of international sanctions in the financial sector, closely monitors risks, applies supervisory measures, proposes relevant legislative initiatives and supports their implementation. As of 1 January 2025, an updated version of the Financial Market Supervision Policy of Lietuvos bankas came into force. It outlines key principles, the latest practices and recommendations of international institutions, with greater focus on the quality of services provided to consumers and dialogue with FMPs. Information about supervisory activities is available on the website of Lietuvos bankas.

In response to the supervised FMP needs and in order to strengthen its consultative function, Lietuvos bankas organises consultation events. According to the established consultation event plan, 18 events on various topics for different FMPs were organised in 2024. All consultation events totally attracted 4,275 attendees, which is 37% more than in 2023.

At the beginning of each year, Lietuvos bankas announces an FMPs inspection plan to ensure market self-regulation and transparency. The plan specifies the inspection areas and timeframes and focuses on AML/CTF and risk management. Depending on the nature of the operational breaches and the objectives of supervision, different enforcement measures are imposed for them.

FMPs are strengthening their operational resilience and compliance with the new requirements, but still remain the target of recurrent cyberattacks. Distributed denial-of-service (DDoS) attacks increased between September and December 2024, disrupting the availability of banking services in Lithuania. These attacks are highly dynamic and constantly evolve to bypass common security measures. In preparation for the application of the Regulation on digital operational resilience for the financial sector, Lietuvos bankas assessed the progress of FMP preparations, conducted cyber resilience tests, organised consultation events and strengthened cooperation with the National Cyber Security Centre (NCSC) and European partners. Together with the NCSC, Lietuvos bankas consistently encourages market participants to share information on various aspects of cyber security. The discussion on additional services on information sharing platforms will continue in 2025.

Financial fraud remains one of the most challenging problems in the financial sector due to the increasing number of cases, their complexity and the magnitude of losses. Accordingly, preventing financial fraud also remains one of the strategically important directions of the activities of Lietuvos bankas. There is a strong focus on both inter-institutional cooperation and cooperation with FMPs to address the challenges posed by financial fraud, as well as on preventive efforts, such as best practice recommendations, training and active involvement in consumer financial education to increase resilience to fraud.

The individual efforts of both Lietuvos bankas and other institutions to ensure sound and effective prevention of financial fraud are not seen to be as effective or as efficient as they could be if they were coordinated. Therefore, aligned and system-wide objectives are pursued. Considering the reasons for the emergence of the factors that lead to financial fraud and their impact on the financial system, the public and its confidence in the financial system and public authorities, Lietuvos bankas has proposed to include the establishment of a coordinated response to financial fraud at the national level as one of the Government’s priorities and/or important objectives in the Action Plan of the Government Programme. It is expected that the establishment of a coordinated system with common objectives and a common strategy would ensure a proportionate and effective response of fraud threats.

On 1 November 2024, amendments to the Republic of Lithuania Law on the Bank of Lithuania came into force, allowing for the conclusion of the procedures related to the application of enforcement measures through an administrative agreement. This new framework, initiated by Lietuvos bankas, is expected to ensure more effective compliance with legal requirements in the long term and to promote broader dialogue between FMPs and the supervisory authority, without compromising the quality of supervision and while enabling more efficient use of the resources of Lietuvos bankas and FMPs. Although little time has elapsed since the entry into force of the amendments, it is already evident that the framework has attracted a lot of attention from FMPs, which have been actively proposing administrative agreements.

In 2024, efforts continued to strengthen AML/CTF and to supervise the implementation of international sanctions in the financial sector. ML/TF risks were assessed in the financial sector and appropriate risk management/mitigation measures were implemented. Lietuvos bankas conducted inspections, arranged meetings with individual FMPs and associations on relevant issues, organised compliance meetings with representatives of specific sectors, focusing on the identified ML/TF risks in particular sectors and their management measures. This information was provided in writing to the heads of FMPs in individual sectors. Lietuvos bankas also actively participated in and contributed to the implementation of and agreement on the National Money Laundering and Terrorist Financing Risk Assessment, and took part in the drafting process of the amendments to the Republic of Lithuania Law on the Prevention of Money Laundering and Terrorist Financing. Lietuvos bankas actively participates in meetings of the Commission for Coordination of International Sanctions, meetings of the Sanctions Working Group of the Baltic States, and coordinates supervision issues related to the implementation of international sanctions with competent authorities in Lithuania and the Baltic States.

Lietuvos bankas assessed the AML measures implemented by four commercial banks in 2023 and found that those banks had improved their customer experience in the implementation of anti-money laundering measures. In 2024, Lietuvos bankas held 10 targeted meetings with FMPs and agreed on measures for 2025 to 2026 to improve customer experience, and will monitor their implementation by FMPs.

In order to improve the experience of payment service users in the application of money laundering risk management measures by FMPs, new instructions for banks, credit unions, EMIs and PIs were adopted on 26 June 2024. They are designed to increase access to financial services and enhance financial inclusion, while effectively managing and mitigating ML/TF risks. These instructions, based on the European Banking Authority’s guidelines, require FMPs to implement specific measures to ensure a safe and accessible financial services environment for all consumers. The instructions also include new requirements for FMPs to inform customers when a payment transaction is suspended. Compliance by FMPs with the requirements set out in the instructions will be monitored.

In order to ensure that consumers are properly informed about the security of customer funds with EMIs and PIs, Lietuvos bankas prepared and submitted to the Ministry of Finance a draft amendment to the Republic of Lithuania Law on Payments. It proposes to establish the obligation for EMIs and PIs to inform their potential and existing customers that funds received from payment service users for the provision of payment services are not considered to be deposits or other repayable funds and are not subject to deposit insurance coverage under the Republic of Lithuania Law on Insurance of Deposits and Liabilities to Investors, and to inform customers about the specific methods and measures applied by individual EMIs and PIs to safeguard customer funds.

In view of the practice followed in the market, where unsolicited services are additionally included in the payment service packages, Lietuvos bankas proposed amendments to the Law on Payments. Payment service providers will not be able to include additional services from another area in the payment services package, thus increasing the price of the package, without the consumer’s consent. The amendments will enable consumers to choose the payment services that are relevant to them.

The study on the investor profile shows a rapid increase in the number of investors in 2023 and growing interest in bonds. The updated overview provides data on the FMPs registered in Lithuania and supervised by Lietuvos bankas in 2023, and assesses changes in the investment portfolios of Lithuanian investors. For the 2023 study, data on investors on the AB Nasdaq Vilnius stock exchange, including legal entities, were collected for the first time. Read more in the Overview of the profile of the Lithuanian investor.

Against the backdrop of growing investor interest in bonds, Lietuvos bankas drew attention to the risks that should be considered before investing in bonds. In addition to safe bonds, such as those issued by governments, there are also junk bonds, which can be even riskier than other financial instruments. Investing in such bonds entails the probability of not recovering the money invested.

The Centre for Financial Market Development (CFMD) of Lietuvos bankas actively promoted the growth of the Lithuanian financial market in order to attract new market participants and increase healthy competition. Data from the Newcomer Programme of Lietuvos bankas show that foreign companies are still interested in obtaining a licence in Lithuania. In 2024, 155 FMPs were advised under this programme (248 in 2023). Last year, almost half of the foreign companies (45.2%) applied for an EMI or PI licence and 14.8% requested a cryptocurrency service provider licence. In 2024, the CFMD communicated with 55 banks from 23 different countries to encourage them to establish their headquarters in Lithuania and to create highly skilled jobs.

The Capital Market Council is a successful platform for cooperation between institutions and associations of market participants, used to share relevant information, raise systemic issues and implement agreed solutions. In 2024 the Capital Market Council, which is in its second year of operation, focused on the implementation of the investment account (IA) tax regime. The new tax regime, which came into force at the beginning of 2025, allows investors to defer the payment of personal income tax until the actual withdrawal of investment profits from the IA. An investor can choose to open an IA in both Lithuanian and foreign financial institutions. The list of eligible financial products that can be included in the IA is extensive and includes listed shares and bonds, funds, money market instruments, government securities, crowdfunding and peer-to-peer finance. The introduction of an IA tax regime is expected to encourage more people to take advantage of long-term accumulation in capital markets. Further work is related to the technical implementation of the IA, with the aim of making the declaration of income earned through the IA as simple as possible.

Efforts have been made on multiple fronts to promote capital market development. Changes to the legislation have been analysed and proposed as necessary to remove redundant requirements, reduce administrative burdens or improve clarity on the application of the legislation. It is worth mentioning the successful initiative of Lietuvos bankas, together with the supervisory authorities of Latvia and Estonia, to harmonise the requirements for the information document to be prepared for public offerings of securities ranging from €1 million to €8 million. In mid-2024, the Estonians adopted the last amendments to the law: the threshold was increased from €5 million to €8 million, where an EU prospectus is required, thus ultimately unifying the basic requirements for public offerings of smaller securities issues. Reporting requirements for pension funds and investment funds were also simplified. In cooperation with market participants, the requirements for investment service providers have been additionally clarified regarding the provision of information on financial instruments to existing and potential customers. Lietuvos bankas and its partners also organised a series of events for potential issuers and presented to company executives and CFOs the capital market as an alternative for raising the necessary funding.

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7.Settlement of disputes between consumers and financial market participants

Units

Dalintis:

Slightly more than 50% of the total number of disputes addressed (377 out of 751) were related to the provision of insurance services. Of these, the largest number of disputes arose from the performance of non-life insurance (131), compulsory third-party liability insurance (104) and Casco insurance (46) contracts. In addition, 11 disputes arose from life insurance contracts. Disputes over payment services, which accounted for 58% of all disputes handled in 2023, decreased by 27% (from 426 to 312) and accounted for 42% of all disputes in 2024. This decrease is mainly due to a lower number of cases related to financial fraud (from 272 to 193); 74 disputes were related to non-cash payment transactions and 29 to payment accounts. Other types of services (credit, investment services, deposits, crowdfunding, non-financial services, etc.) accounted for 8% of disputes (62 disagreements).

Units

Dalintis:

As many as 166 amicable settlements were reached, resulting in payment of nearly €395,000 to consumers and fulfilling other property and non-property claims. Although the number of amicable settlements slightly decreased (6%) compared to 2023, through its mediation, Lietuvos bankas helped the disputing parties to agree on the payment amount that was €65,000 higher than in 2023. Through active application of various dispute prevention and conciliation methods, justified consumer claims were satisfied, compromise was reached that met the interests of both parties. Seven preventive meetings with representatives of banks and insurance companies, involving detailed discussions on consumer disputes and possible ways to minimise disputes, also contributed to the positive results.

Unit

Dalintis:

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8.Resolution of financial institutions

In carrying out its mandate as a resolution authority, Lietuvos bankas helps to ensure that significant financial institutions in difficulty can be resolved swiftly, without disrupting the operation of key functions, while protecting the funds of depositors and taxpayers. In the 2024 resolution planning cycle, two new and three updated resolution plans for credit institutions of medium and lower significance were prepared. Furthermore, the resolution plans of the four largest systemically important banks were updated, in collaboration with the Single Resolution Board and the national resolution authorities of other countries where these banks operate. By the end of the 2024 resolution planning cycle, the prepared resolution plans covered 99.9% of the assets in the banking sector. In the 2025 cycle, the resolution planning work will continue consistently, and the prepared resolution plans will cover 100% of the assets in the banking sector.

(market share by assets in Q3 2024, percentages)

Dalintis:

To safeguard state funds and the stability of Lithuania’s financial system, along with the preparation or updating of bank resolution plans, a mandatory minimum requirement for own funds and eligible liabilities (MREL) is established. This requirement aims to ensure that banks have sufficient capital and certain liabilities to absorb losses and restore capital. All banks operating in Lithuania that were subject to the mandatory MREL in 2024 complied with it. One systemically important bank has a transitional period of several years to build up MREL resources.

The amount of financial resources available in the Single Resolution Fund (SRF) exceeds the target level of 1% of the sum of insured deposits of banks in the banking union. As a result, just as in 2024, annual contributions to the SRF will not be collected in 2025. The SRF ensures that financial institutions contribute to the costs of stabilising the financial system and that the resolution authority is able to apply its resolution tools and powers effectively, as necessary. The SRF was built up from 2016 to 2023. Since its establishment, Lithuanian credit institutions have transferred a total of €64.25 million to the SRF. At the end of 2024, the SRF financial resources amounted to €80 billion and exceeded 1% of the amount of insured deposits of banks in the banking union.

In September 2024, Lietuvos bankas, together with other institutions responsible for financial stability in the Nordic-Baltic countries (NBC), participated in an exercise on managing a simulated financial crisis in the NBC region. The simulation involved three fictitious banks with cross-border activities. Almost 450 participants representing Danish, Estonian, Finnish, Icelandic, Latvian, Lithuanian, Norwegian, Swedish and EU institutions, such as the EC, the ECB, the Single Resolution Board and the European Banking Authority, participated in the exercise. The IMF was invited to participate as an observer.

The aim of the exercise was to test how the responsible authorities communicate, share information and cooperate to handle a situation of high uncertainty and urgent action. The exercise was designed around a crisis scenario in which fictitious banks went through the three phases that can be envisaged in a banking crisis management process: (1) from business as usual to recovery, including increasing liquidity; (2) from recovery to resolution, where the resolution authorities take over the management of the bank; and (3) post-resolution, where the restructured bank returns to the market. During the exercise, the authorities applied the tools and powers available under the EU regulatory framework for banking supervision and crisis management.

The authorities will integrate the lessons learned from the exercise into their existing risk management systems. This will contribute to improving preparedness for challenges and further strengthening the crisis management system in the NBC region.

Lietuvos bankas actively contributed to the development of the recovery and resolution regime for insurance companies in 2024. At the end of 2024, the Council of the European Union approved the Insurance Recovery and Resolution Directive (IRRD), which establishes a framework for the recovery and resolution of insurance and reinsurance undertakings. Lietuvos bankas continued to prepare for the transposition of the IRRD and participated in the European Insurance and Occupational Pensions Authority (EIOPA) working groups, drafting legislation and other documents implementing the provisions of this Directive.

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9.Payments

The non-cash payments market in Lithuania continued to grow in 2024. The use of non-cash payment services by Lithuanian residents and businesses are most accurately reflected in domestic transactions, i.e. transactions carried out between customers of Lithuanian payment service providers (PSPs). Compared to 2023, the number of all domestic non-cash payments increased by 8% (12% in 2023) in 2024, representing 1.18 billion transactions with the value of €1,285 billion. Card payments accounted for 50%, credit transfers for 40%, e-money payments for 7% and other payment services for 3% of domestic transactions. According to the 2024 survey of Lithuanian residents, card payments and online payments remain the preferred method of residents: 62% of respondents (63% in 2023) are more likely to pay by card, smart device or bank transfer, although 94% of respondents use cash in their daily activities.

The transposition of the EU Directives on the direct participation of EMIs and PIs in payment systems into the Lithuanian law opens up greater opportunities for competition for these payment market participants. EMIs and PIs that comply with the requirements of the Payment Services Directive (PSD2) and the requirements laid down by the ECB will be allowed to become direct participants in payment systems operated by EU central banks and private companies. As of 9 April 2025, EEA-licensed EMIs and PIs that have access to the CENTROlink payment system of Lietuvos bankas will be able to join under a different status, i.e. as a direct participant rather than through Lietuvos bankas, as has been the case so far, and will be fully responsible for the payments submitted to the system. In order to ensure a smooth migration process, Lietuvos bankas is actively working with market participants to ensure their preparedness for the new requirements.

The number of payments executed in the CENTROlink payment system of Lietuvos bankas continued to grow in 2024. The number of instant payments and direct debit transfers increased rapidly, while the number of regular credit transfers remained stable. In 2024, instant payments accounted for 60% (55% in 2023) of all payments and rose almost 1.5 times (from 125.4 to 176.8 million). The use of SEPA direct debit has more than doubled. In total, more than 294.6 million SEPA payments were made through the system, amounting to €620 billion. At the end of 2024, 138 PSPs from 20 countries in the EEA used CENTROlink services, while 65 PSPs were able to provide instant payment services.

Lietuvos bankas promotes the development of payment services in Lithuania, therefore, to foster the development of innovative utility or other bill payment and tax collection services, Lietuvos bankas is implementing the SEPA Request-to-Pay (SRTP) scheme developed by the European Payments Council. The SRTP will enable public sector bodies and financial market participants to facilitate and improve payment collection processes by allowing organisations or individuals to request payments from their customers under an international service scheme. A customer will be able to view the document received in their banking environment and to either authorise or reject the payment request. It should be noted that to promote innovative person-to-person payments, Lietuvos bankas provides the Proxy Lookup Service (PLS), which allows users of mobile banking apps to conveniently make payments using a phone number instead of the payee’s account number. This service is provided by two major banks in Lithuania and several smaller market participants are getting ready to offer it. As part of the requirements of the Instant Payments Regulation intended to protect consumers from fraud, from October 2025, Lietuvos bankas and other PSPs will provide a verification of payee (VOP) service to check whether the payee’s account number and name or surname match.

Lietuvos bankas approved an updated list of services included in the basic payment account and the maximum commission fee. As of 1 January 2025, residents using this service will be able to make more online transfers and withdraw more cash from ATMs, and the package of services will be cheaper compared to the basic payment account service, which was provided until January 2025. The basic payment account service consists of the essential payment services, including a payment account, account management tool, execution of online transfers in euro and crediting of payments received, a payment card, cash withdrawal and cash deposit services. The maximum fee for the basic payment account calculated and approved in accordance with the provisions of the Law on Payments is €1 per month. Lietuvos bankas has also been tasked with the calculation of the amount of cash withdrawals from ATMs and the number of online transfers per month that would meet the needs of 90% of the Lithuanian residents holding an account. According to of Lietuvos bankas, the amounts that meet these conditions are 15 online transfers per month and a cash amount of €800. Cash withdrawals must be available at no extra cost within the credit institutions’ own ATM network, including the “Bankomatas” network, which has been introduced under the Memorandum of Understanding for Ensuring Access to Cash in Lithuania. The scope of the basic payment account service and the maximum fee will be reviewed every three years.

Lietuvos bankas was active in raising awareness among small businesses about payment services and their fees. In January 2025, Lietuvos bankas launched a comparative website on payment service fees for business. It serves as a convenient one-stop shop for businesses to compare standard fees for commonly used payment services and help them choose the most appropriate PSPs.

Launched in November 2023, the preparatory phase of the digital euro project is in progress and will continue until the end of October 2025, when the Governing Council of the ECB will decide on the way forward. The representatives of Lietuvos bankas actively participate in the Eurosystem’ High-Level Digital Euro Task Force and the Project Steering Group, which are set up to manage the preparatory phase of the project. In 2024, the selection of suppliers of digital euro components took place, new consumer surveys and experiments were launched to gather insights into consumer preferences, the development of the methodology for setting the digital euro maximum holding limit was under way, and the draft rulebook was updated. In addition, active cooperation engaged stakeholders (merchants, consumers, PSPs) to gather their views and needs in order to ensure the highest standards of quality, security and use of the digital euro. Once this preparatory phase is completed, the Governing Council of the ECB will decide whether to proceed to the development phase of the digital euro, which will include the processes of development and testing and live testing of digital euro integrated services. The Governing Council of the ECB will only consider the launch of the digital euro once the legal regulation for the digital euro has been approved by the Council and Parliament.

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10.Cash

As of 31 December 2024, the total value of euro banknotes and coins issued into circulation by Lietuvos bankas amounted to €8,100 million.

Dalintis:

From 1 May 2025, in Lithuania, the final amount of the shopping cart will be rounded, as set out in the Republic of Lithuania Law on the Rounding of Cash Payments initiated by Lietuvos bankas and adopted by the Seimas at the end of March 2024. This initiative aims to reduce the costs of using cash for individuals, businesses and the state, to ensure more convenient payments and to reduce the environmental impact of cash. When paying for goods or services in cash, the final amount of the shopping cart will be rounded to the nearest 5 cent, eliminating the need to give change in 1 and 2 euro cent coins. The final amount due will be rounded up or down to 0, 5 or 10 euro cents, depending on whether the last digit is closer to 0, 5 or 10. The rounding does not lead to price increases and is fair to both buyers and sellers. Following the introduction of rounding, it will still be possible to pay the rounded amount with 1 and 2 euro cent coins. Traders will not be obliged to accept more than 50 coins of any denomination in a single payment, as before rounding. The initiative was driven by the fact that the majority of 1 and 2 cent coins are used for payments only once – after receiving change in these denominations, they are either lost or end up in residents’ piggy banks, cars, fountains, and so on. Around 70% of 1 and 2 cent coins released into circulation and around 30% of other coins do not return to Lietuvos bankas. Every year, Lithuanian residents lose 50 tonnes of 1 and 2 euro cent coins worth around €300,000. Lietuvos bankas took this initiative after a public discussion with the public on the use of 1 and 2 euro cent coins and after considering the support of the Lithuanian population for rounding, as well as the experience of other countries that are already apply rounding to cash payments. According to the latest Eurobarometer survey, 7 out of 10 Lithuanians would support the elimination of 1 and 2 euro cent coins in the euro area and the compulsory rounding of the final amount of the shopping cart. Seven countries in the euro area that apply rounding include Ireland, Belgium, Italy, the Netherlands, Finland, Slovakia and Estonia. Further information on rounding in Lithuania is available on the website of Lietuvos bankas.

In 2024, sufficient access to cash was ensured, and the ATM network which was expanded in 2022 was maintained. According to residents, access to cash improved. Credit institutions installed 100 new ATMs in Lithuania’s regions as part of the Memorandum of Understanding for Ensuring Access to Cash in Lithuania (hereinafter, the Memorandum), doubling the number of locations where cash can be withdrawn. Prior to the signing of the Memorandum, ATMs were operating in 91 localities, and following its implementation the possibility of cash withdrawals is ensured in at least 191 localities. According to the ECB’s public survey conducted in autumn 2023 and spring 2024, the accessibility of cash in Lithuania has improved, as 88% of Lithuanians find it easy to get to the nearest ATM or bank branch, up from 86% two years ago. In addition to ATMs, residents can also use their bank cards to withdraw cash for their daily needs at around 4,000 cash service points of partner credit institutions, such as terminals operated by UAB Perlas Finance, cash desks at retail outlets where this service is available, and branches and cash desks of some credit unions. Locations for accessing cash (ATMs and alternative locations) are listed on the cash accessibility map administered by Lietuvos bankas. Lietuvos bankas constantly monitors and evaluates the access to cash in Lithuania and takes action, as necessary.

More counterfeit money was detected in Lithuania. In 2024, Lietuvos bankas investigated and removed from circulation 1,564 counterfeit euro (1,112 banknotes and 452 coins). In 2024, as compared to 2023, 27% more counterfeit euro banknotes and 9% more counterfeit coins were found in Lithuania. The majority of the counterfeit euro banknotes were in the denominations of 50 euro (40%) and 100 euro (25%). In 2024, Lietuvos bankas examined 22,000 banknotes and coins upon receiving applications from natural and legal persons to exchange worn or damaged currency for the total value of €897,000.

Residents are bringing in fewer and fewer litas for exchange. In 2024, Lietuvos bankas exchanged into euro LTL 3.5 million, i.e. 20% less than in 2023, bringing the total value of litas in circulation to LTL 398 million as at 31 December 2024.

In 2024, Lietuvos bankas issued into circulation four collector coins, one commemorative coin and a numismatic set of circulation coins. Numismatic items commemorate prominent figures and anniversaries of historical events. They can be purchased on the e-shop of Lietuvos bankas at monetos.lb.lt.

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11.Statistics

Under the Official Statistics Programme, Lietuvos bankas implemented the most important tasks as outlined in its statistics work programme for 2024. The quality, data availability and analytical capacity of financial and macroeconomic statistics continued to improve, and special attention was paid to the preparation for the harmonisation of bank reporting in the euro area. Lietuvos bankas published more detailed payments statistics, provided more in-depth macroeconomic statistics, prepared for the development of statistics on financial market participants, and continued developing climate-related financial statistics.

The biennial consumer survey shows that most consumers find and understand the data published by Lietuvos bankas very easily or easily (55% and 63% respectively).

The presentation of data was rated as good, with the prevalence of very good (25%) and good (43%) ratings.

Dalintis:

The level of trust in the data published by Lietuvos bankas remains high, i.e. 88% of respondents completely trust or trust the data.

Dalintis:

As part of the implementation of the Data Management Maturity Programme (DAMAMA), Lietuvos bankas continued its data maturity projects. An important milestone in the data management programme has been completed, as banks operating in Lithuania started to report supervisory information to REGATA, a modern reporting system (read more here). The first data products have also been created on the data platform, and their metadata is already available in the data catalogue. The implementation of the data dissemination project has started. The aim of the project is to develop a modern, user-friendly data portal and a common data delivery mechanism to streamline data dissemination processes. The maturity of data management has been further increased.

Lietuvos bankas joined the EC data centre initiative to promote the development of European finance and was the first to upload synthetic (artificial) corporate loan data to the EU digital finance platform. Synthesised datasets reveal the characteristics of the domestic credit market and provide secure access to data. Read more here.

On 31 August 2024, investment funds were informed of the amendment to the ECB regulation adopted on 27 June 2024 on the new attributes to be collected, and preparations have started regarding the changes to the statistical reporting by CIUs.

Additional data on e-money payments, payment initiation services, cash withdrawals using cards issued by Lithuanian PSPs and payment transactions using such cards by merchant category were published. Payments received by customers of Lithuanian PSPs are further disaggregated both by residency and by payment service attributes. In addition, the new data on payment services have been broken down into three market segments (credit, e-money and payment institutions). Read more here.

Lietuvos bankas actively contributed to the ECB’s compilation of climate-related statistics by collecting data for the compilation of climate-related financial statistics and compiling the 2022 experimental and analytical statistics.

In 2024, a benchmark revision of balance of payments and financial accounts statistics was carried out. This revision concerned all EU countries, in coordination with Eurostat and the ECB, to have harmonised macroeconomic statistics. The revision of Lithuanian financial accounts statistics covered the period from the first quarter of 2004 to the fourth quarter of 2023. The data for the non-financial corporation (S.11) and household (S.14) sectors have been substantially adjusted, and the implementation of the new methodology has reduced the statistical discrepancy between the financial and non-financial accounts. Read more here. Foreign direct investment (data for 2020-2022 have also been revised. Read more here.

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12.Fiscal agent

Acting as the fiscal agent under the Republic of Lithuania Law on the Bank of Lithuania, in 2024, Lietuvos bankas administered accounts of public entities and carried out financial operations for public entities under the procedure and conditions laid down by Lietuvos bankas. Lietuvos bankas provided banking services to the following public entities: the Ministry of Finance by administering the accounts of the State Treasury of the Republic of Lithuania, national promotional institutions and other public sector institutions managing statutory funds, as well as EU institutions, and foreign central banks within the Eurosystem Reserve Management Services framework.

As of 31 December 2024, Lietuvos bankas administered 112 accounts of public entities (108 accounts as at 31 December 2023). These accounts have been opened and administered at Lietuvos bankas in accordance with the legal acts of the Republic of Lithuania, Lietuvos bankas and the ECB.

Lietuvos bankas offers the following banking services to public entities: payment services, foreign exchange transactions, account statements and other reporting services. In the course of 2024, Lietuvos bankas executed 2,865,700 credit transfers under the payment instructions of public entities; their total value amounted to €66.6 billion.

As part of the implementation of the Consolidated Account Management System of the State Treasury (VIKSVA) project aimed at centralising the storage and management of state funds to manage state funds more rationally and efficiently, the Ministry of Finance actively used the services of the CENTROlink payment system administered by Lietuvos bankas (including the instant payment service), while new budgetary institutions were joining VIKSVA, and in 2024 submitted twice as many payment orders for execution as in 2023, when the VIKSVA project was just launched.

Dalintis:

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13.Organisation of activities

Dalintis:

In 2024, structural changes were implemented in the Financial Market Supervision Department and the Legal and Licensing Department, both performing the supervisory function, as well as in the Strategy and Governance Department. The Financial Market Supervision Department separated the regulatory and inspection functions in order to properly implement and perform the supervisory function in terms of money laundering and terrorist financing. For the purpose of the quality of the licensing process, the Licensing Division of the Legal and Licensing Department has been reorganised to ensure soundness, transparency and financial capacity of financial market participants in the market, as well as the competence and good repute of their managers and other persons in charge. The main common objective of those implemented changes was to contribute to the stability and soundness of the financial system as a whole, as well as to prepare, in a timely and appropriate manner, for the application of the Markets in Crypto-Assets Regulation (hereinafter, the MiCA Regulation), which entered into force on 1 January 2025, and for the regulation of crypto services. The Project Management Division has been established in the Strategy and Governance Department with the aim of creating a partially centralised project management system, bringing together the project management community and raising the overall level of project management maturity at Lietuvos bankas.

In 2024, strategic management and leadership competences for (inter)personal effectiveness were further developed. The “Leaders on a Mission” senior management development programme focused on building the management team and strengthening cooperation, discussions on the role of the leader in the strategy- and mission-driven management of the organisation, as well as on culture building, change management, building organisational resilience, and other key issues. Emphasis was placed on developing the competencies of staff members with high potential, while teams were trained to improve communication and cooperation skills that are relevant to Lietuvos bankas.

For the seventh consecutive year, the staff of Lietuvos bankas have participated in the ECB-coordinated Schuman inter-institutional staff exchange programme, which is open to all staff of the ESCB and the Single Supervisory Mechanism (SSM) institutions. The main objective of the programme is to provide the staff of EU central banks and supervisory authorities with a unique opportunity to gain hands-on experience in specific projects in other organisations, thus contributing to the promotion of a common culture of mobility and closer cooperation within the ESCB, and to the implementation of the SSM. Three staff members of Lietuvos bankas joined colleagues from Spain, France and the ECB, while Lietuvos bankas welcomed colleagues from the Irish and German central banks.

In 2024, staff members were encouraged to engage in social activities. Education sessions for children from day-care centres were organised in the historic bank building in Kaunas, and funds raised during the auction of goodies made by the staff and the Cake Day were donated to vulnerable groups of the society.

In 2024, Lietuvos bankas participated in a number of programmes encouraging Lithuanians to return to Lithuania. Lietuvos bankas cooperated with the consulting centre Grįžtu.LT under the auspices of the Ministry of Foreign Affairs of the Republic of Lithuania and contributed to the activities of Global Lithuania by publishing on the websites of these organisations information about job and internship opportunities, prizes and scholarships, and took part in the discussion “Returning Lithuania. A Dialogue with the Diaspora” (“Sugrįžtanti Lietuva. Dialogas su diaspora”). The Money Museum invited Lithuanian diaspora students from the US and Canada, who had returned to Lithuania for a few-weeks internship in various organisations.

In 2024, the three most advanced students (based on academic achievement and motivation) of the Quantitative Economics study programme at Vilnius University were awarded the Lietuvos bankas scholarship. The aim of this scholarship is to raise the profile of Lietuvos bankas as a centre of excellence, to encourage the most talented Lithuanian pupils to choose Quantitative Economics at Vilnius University and to train analysts meeting the standards of the best universities, who will contribute to a qualitative change in the Lithuania’s economy, finance, data analysis and forecasting.

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14.Research activities

Research at Lietuvos bankas is primarily conducted at the Centre for Excellence in Finance and Economic Research (CEFER) and the Applied Macroeconomic Research Division (TMTS). In cooperation with Vilnius University and Kaunas University of Technology, CEFER aims to attract internationally acclaimed researchers, thus raising the quality of economic and financial research, changing the academic culture, stimulating expert discussions and ultimately positioning itself as the hub of economic and financial sciences in the Baltic region. The results of TMTS research help in making monetary and other economic policy decisions, and the models it develops help to improve the accuracy of projections for the Lithuanian economy, analyse economic policy scenarios and make informed economic decisions.

Dalintis:

Lietuvos bankas researchers published their research papers in high-profile international journals. The research output of CEFER and TMTS in 2024 includes 15 working papers, occasional and discussion papers, as well as 7 publications in top-tier international journals (such as Journal of Monetary Economics, American Economic Journal: Macroeconomics, The Economic Journal, Journal of Economic Behavior and Organization, Economics of Transition and Institutional Change, Journal of Education and Work, Journal of Economics and Finance).

Lietuvos bankas organised high-level international research conferences, training sessions and research clusters in the Baltic region. In 2024, the fifth high-level economic research conference “Macroeconomic adjustments after large global shocks” was jointly organised by Lietuvos bankas, Narodowy Bank Polski and the Central Bank Research Association (CEBRA). It featured distinguished keynote speakers – professors from Harvard University, the Barcelona School of Economics and the Bank of England’s Monetary Policy Committee – presenting papers on international finance, competition in commodity markets and monetary policy, and economic researchers from around the world presenting research in sessions on “Trade sanctions”, “Global shocks”, “Policies in an uncertain world” and “Networks and spillovers” sessions. The 13^th Lithuanian Conference on Economic Research Winter Session held in December was attended by over 40 economists from universities and other institutions in the UK, Norway, Denmark, the US, Singapore and Lithuania. Many participants were members of the Lithuanian diaspora conducting economic research at universities abroad. Overall, 14 papers were presented in the following sessions: “Econometrics”, “Health, age and longevity”, “Financial markets”, “Economic transformations”, and “Resilience to economic shocks”.

Researchers engaged in various activities to promote the dissemination and quality of economics and finance education in Lithuania. CEFER organised an annual research workshop for young researchers from Vilnius University and Kaunas University of Technology, with the contribution on the part of the Bank’s researchers to the scientific committee and active participation in the workshop. The promotion of economic science is also ensured through visits and presentations by foreign researchers and training sessions, all of which are open to all interested parties, including external researchers and experts.

Researchers of Lietuvos bankas are involved in the development of lectures and economic studies of high quality in Lithuania. In cooperation with Vilnius University, Lietuvos bankas further implemented the bachelor’s programme in Quantitative Economics. In 2024, the programme attracted the highest number of applicants and admissions ever, despite its highest enrolment bar among all Lithuanian university programmes. It is taught by Lietuvos bankas researchers with PhDs from leading US and European universities. The programme is unique in its structure as it combines the economic intuition with disciplines, such as mathematics, statistics, economics and data science. CEFER also continues joint Vilnius University and Kaunas University of Technology doctoral courses in econometrics, methodology, and macroeconomics. In spring 2024, the third CEFER Challenge team competition took place, inviting undergraduate and postgraduate students from different disciplines to participate and apply the knowledge gained during lectures to real problems related to the geoeconomic fragmentation of the world, and to answer questions about the economic and financial implications of emerging tensions, sanctions and international trade wars. Six student teams from Lithuania, four from Latvia, three from Austria and two from Sweden took part in the challenge.

The results of the second wave of the Lithuanian Household Finance and Consumption Survey were used to develop a position on economic policy. Data from the second wave of the Lithuanian Household Finance and Consumption Survey published by the ECB and Lietuvos bankas in their publications in 2023 (the survey is conducted periodically throughout the Eurosystem, and is carried out in Lithuania in cooperation between the ECB and Lietuvos bankas; the data are available to researchers and analysts) have been actively used in the preparation of the position of Lietuvos bankas on important issues of the Lithuanian economic policy, e.g. in the assessment of changes to the 2nd pillar of the pension system and in the preparation of the new statistics on the household Distributional Wealth Accounts.

International micro-level data and research initiatives launched at the initiative of Lietuvos bankas continue. Lithuanian economic data are included in the international research databases and research projects by the Competitiveness Network, the Global Repository of Income Dynamics and the Linked Employer-Employee Data (CompNet, GRID, LinkEED). They use administrative data to analyse competitiveness, wage dynamics and inequality between Lithuania and other countries. This research allows better understanding of the Lithuanian economy and its context, and provides valuable insights into competitiveness of Lithuanian companies and labour market trends, helping to develop evidence-based economic policies.

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15.Other important events during the reporting period

Technical cooperation is a key area of Lietuvos bankas’ activities. As of 21 September 2022, Lietuvos bankas, together with 19 ESCB national central banks and the ECB, has been successfully implementing an EU-funded “Programme for Strengthening the Central Bank Capacities in the Western Balkans with a view to the integration to the European System of Central Banks. Phase II”. As a follow-up to the programme completed in 2021, it is intended to strengthen the institutional capacity of central banks and banking supervisory agencies in six Western Balkan countries, by improving their analytical and policy tools and by transposing best international and European standards into national practices.

The two-year EU-funded programme “Regional initiative to support African Central Banks through capacity building: Strengthening financial stability, resilience and governance – Towards an enhanced European System of Central Banks (ESCB) dialogue with Africa” launched at the end of 2023 is being successfully implemented in collaboration with seven ESCB national central banks and the ECB. It seeks to strengthen the capacity of central banks in African countries and address major challenges in good governance, financial stability, resilience, strategic planning, and international cooperation through dialogue and sharing of expertise. The programme will benefit 12 African central banks covering a total of 24 African countries.

On 1 January 2025, Lietuvos bankas, together with the Polish and Spanish supervisory authorities, launched a two-year EU Twinning project “Implementing Effective Supervision over Non-Bank Financial Institutions” at the National Bank of Ukraine. The project is worth €1.5 million and will last for 24 months.

On 6-7 May 2024, Lietuvos bankas, together with the European Bank for Reconstruction and Development, the European Investment Bank, the IMF, the World Bank Group, the ECB and the EC, hosted the Vienna Initiative Full Forum in Vilnius. During the forum, solutions were sought to address the main challenges currently faced by policy makers. Discussions took place in relation to bank competition in the region, the impact of high interest rates, the challenges and opportunities of digital banking, as well as the challenges that financial institutions have to cope with in a context of high economic and geopolitical uncertainty. The main objective of the Vienna Initiative is to ensure financial stability in the European emerging markets. Following the event, a decision was taken to further increase involvement in the Vienna Initiative, and in summer 2024 Lietuvos bankas became a full member of the Vienna Initiative.

The term of the IMF Executive Director appointed by the Baltic countries is halfway through, as on 24 January 2023 Vitas Vasiliauskas took up his post as the IMF Executive Director on the institution’s Executive Board and will be the main representative of the Nordic-Baltic Constituency (NBC) at the organisation until mid-2026, at which point Denmark will take over the chairmanship. This is the first time that a Baltic country-delegated IMF Executive Director represents the NBC at the highest level. According to the agreements governing cooperation within the NBC at the IMF, Lithuania, together with Latvia and Estonia, is responsible for ensuring the adequate preparation of the NBC Executive Director for key IMF Executive Board meetings. Under a bilateral memorandum of understanding, Lietuvos bankas coordinates this task in collaboration with the Ministry of Finance.

National procedures to increase IMF quotas were implemented: in June 2024, the Seimas approved by law the increase of Lithuania’s IMF quota from 441.6 million to 662.4 million SDR. Lithuania is among the first countries to complete the national procedures for the quota increase under the 16^th IMF quota review in 2023. The quota increase will come into effect once the remaining member countries complete the necessary procedures and the criteria for the validity of the quota review are met (the deadline is May 15, 2025, but it may be extended). Lithuania, along with the Nordic-Baltic region and other European countries, has always supported a strong and quota-based IMF. In Lithuania, Lietuvos bankas is responsible for obligations related to the IMF quota, while the decision to change the Republic of Lithuania’s quota size in the IMF is made by the Seimas of the Republic of Lithuania.

In November 2024, the 2020 Bilateral Borrowing Agreement (BBA) between Lietuvos bankas and the IMF was extended until the quota increase under the 16^th IMF quota review takes effect, or until 31 December 2027 (whichever is earlier). The IMF initiated the extension to ensure continuity of its resources. After Lithuania joined the BBA mechanism in 2021, Lietuvos bankas committed to lend up to the equivalent of €297 million in SDRs, as necessary, and the IMF committed to pay interest on the loans granted. As the BBA mechanism has not yet been activated, Lietuvos bankas has not granted any loans under the agreement.

On 16 December 2024, the Annual Economics Conference of Lietuvos bankas was held to mark the 10th anniversary of the adoption of the euro in Lithuania. The main theme of the event was the pillars of resilience to global geopolitical shifts. The conference focused on the main challenges faced by Europe and the means to overcome them, how further integration could help strengthen Europe’s economic potential and resilience, and covered topics, such as the response to and economic effects of geopolitical fragmentation, enhancing strategic autonomy and upscaling of industrial capacity (including defence). The conference was opened by Gitanas Nausėda, President of the Republic of Lithuania, with a keynote speech by Christine Lagarde, President of the ECB, and other high-level speakers who participated in the discussions, including Valdis Dombrovskis, Member of the EC, Rimantas Šadžius, Minister of Finance, Stefan Ingves, Chair of Toronto Centre and former Governor of Sveriges Riksbank, Enrico Letta, President of the Jacques Delors Institute and former Prime Minister of Italy, Alfred Kammer, Director of the European Department at the IMF, Giancarlo Corsetti, Chair of the Robert Schuman Centre and Professor of Economics at the European University Institute, Beata Javorcik, Chief Economist at the European Bank for Reconstruction and Development, Andriy Pyshnyy, Governor of the National Bank of Ukraine, and Vitas Vasiliauskas, Managing Director of the IMF.

In July 2024, Lietuvos bankas launched the information campaign “Decide for Yourself”, inviting the public to pay more attention to the management of their personal finances, i.e. to avoid overpaying for financial services, to take advantage of opportunities to increase their savings, to actively defend their rights, and to recognise illegal attempts to swindle them out of money.

On its website, Lietuvos bankas publishes comparative information relevant residents, such as payment service fees, unit-linked insurance deduction calculator, interest rates on time deposits, savings and irrevocable deposits offered by commercial banks and credit unions. The development works for a calculator for housing loans has also started.

As part of its financial education activities, in 2024, Lietuvos bankas ran an information campaign on unit-linked insurance “Look into it, think about it and then decide” (“Įsigilink, apgalvok ir tik tada nuspręsk”), participated in the Global Money Week initiated by the Organisation for Economic Co-operation and Development (OECD) (in 2024 it was aimed at raising awareness among children and young people about potential risks in the financial sector), organised the National Day of Financial Literacy and arranged a financial literacy hike in Kaunas.

In 2024, together with the EC, the OECD, Latvijas Banka and other representatives of the financial and security sectors, Lietuvos bankas launched a project to increase the digital financial literacy and resilience to financial fraud among the Lithuanian and Latvian populations.

In 2024, for the first time, Lietuvos bankas participated in the open architecture weekend event “Open House Vilnius”. People interested in architecture had the opportunity to visit the historic building of Lietuvos bankas (at Gedimino pr. 6) and hear the stories told by volunteer tour guides about its architecture and history.

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Annual financial statements of Lietuvos bankas

Annual financial statements of Lietuvos bankas are available here.

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Annexes

Collector and commemorative coins issued into circulation in 2024

The list of collector and commemorative coins put into circulation is available here.

Resolutions adopted by the Board of Lietuvos bankas and made publicly available on the Register of Legal Acts in 2024

In 2024, Lietuvos bankas took active legislative actions by adopting its regulatory legislation. It is published in the Register of Legal Acts.

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Abbreviations

AB                    public limited liability company

AML/CTF           anti-money laundering and counter-terrorist financing

CCU                  central credit union

CIU                   collective investment undertaking

EC                    European Commission

ECB                  European Central Bank

EMI                  Electronic money institution

ESCB                European System of Central Banks

EU                    European Union

EURIBOR          Euro interbank offered rate

Eurosystem      European Central Bank and euro area central banks

FBF                   financial brokerage firm

FMP                  financial market participant

GDP                  gross domestic product

HICP                 Harmonised Index of Consumer Prices

IMF                   International Monetary Fund

MFI                   monetary financial institution

ML/TF               money laundering and terrorist financing

NBC                  Nordic and Baltic countries

OECD                Organisation for Economic Co-operation and Development

PI                     payment institution

PSP                   payment service provider

SDR                  special drawing rights

SRF                  Single Resolution Fund

UK                    United Kingdom

US                    United States of America