| Abstract [eng] |
Banking supervision in Lithuania did not have time to gain much experience yet. During the Soviet occupation the whole banking system was destroyed. In 1990, after Lithuania‘s independence proclamation, not only the Bank of Lithuania but also all the other banks had to start their work from the beginning. That is why the effective and trustworthy banking supervision still is a very important and urgent question. In the Republic of Lithuania banking supervision is carried out by the Bank of Lithuania. The Central Bank performes It‘s supervisory functions through a Departament of banking supervision. There are two methods to implement supervision: documentary supervision and inspection. Using these two methods the Departament is strongly restrained by Lithuanian laws and the Core Principles for Effective Banking Supervision set by the Bazel Committee on Banking Supervision. Banking supervision has three stages: licencing, supervising licenced banks and applying certain measures. During all these three stages the Bank of Lithuania performes supervisory functions. All banks have to inform the Central Bank about the results of their work, to comply with laws and let Central Bank to inspect their activity. There are certain requirements for shareholders, managers, capital, business plan, liquidity and others. The breach of such requirements is punished by taking certain measures, such as warning, penalty or even revocation of the licence. Not in all countries banking supervision is performed by Central Bank of the country. For example, in Germany banking supervision is carried out by the Federal Banking Supervisory Office, working in cooperation with the Deutsche Bundesbank. However, such differences have no significant influence for effective supervision. Despite quite short existence, the Bank of Lithuania is nowadays considered to be a strong and trustworthy supervising institution, that well performs it‘s supervisory functions. |
