OREANDA-NEWS. January 29, 2007.1. On the results of inspection of AB Ukio bankas. The Board of the Bank of Lithuania was presented information on the results of inspection of AB Ukio bankas, reported the press-centre of Bank of Lithuania.

The inspection focused on the Bank management, internal control, and management of individual risks (credit, liquidity, market and operational).

At the presentation of the inspection results it was pointed out that the Bank was in the sixth position among the domestic commercial banks by asset size. With the growth of the volume of its assets the bank kept strengthening its capital base. The inspection report also specified the deficiencies in the operation of the bank.

Having assessed the results of the inspection, the Board of the Bank of Lithuania instructed Ukio bankas to provide for measures on reducing the volumes of loans for the financing of the acquisition, construction, repair, and reconstruction of real estate in foreign countries.

The Bank was obliged to remove all the deficiencies indicated in the inspection report by 1 June 2008 and to report to the Bank of Lithuania thereof.

2. Information about the results of inspections of credit unions in Q4 2007
Information about the results of inspections of credit unions in Q4 2007 was presented.

In Q4 2007, general inspections were carried out in the following nine credit unions: Germanto lobis’ (Telsiai), Pagegiai, Varena, Zemdirbio parama’ (Vilnius), Kaunas Archbishopric, Kreditera’ (Marijampole), National (Vilnius), Vievio taupa’ (Elektrenai Municipality) and Reiskiai’ (Plunge region).

The general inspections examined the compliance of the credit unions with the Republic of Lithuania Law on Credit Unions and other legal acts for the regulation of their activities, their articles of association; in addition, the removal of the deficiencies identified during previous inspections was checked, the activities of the credit union bodies and their financial standing were analysed (credit and liquidity risk management, capital).

3. On permission to register an amendment to the Articles of Association of AB Medicinos bankas
The Board of the Bank of Lithuania gave permission to AB Medicinos bankas to register an amendment to its Articles of Association in relation to the increase of the Bank’s authorised capital to LTL 68 875 000 adopted at a general shareholders’ meeting on 29 March 2007.

Currently, the authorised capital of Medicinos bankas amounts to LTL 34 347 000.

4. On approval of Minimum Requirements for Drawing up the Business Plan of Banks
The Board of the Bank of Lithuania approved Minimum Requirements for Drawing up the Business Plan of Banks. It was established that banks in operation in Lithuania must develop medium-term strategic plans, and banks under establishment ? operation outline for one year, as well as strategic plans for three years.

The new document sets out the requirements for the contents of the business plan, indicates that particular attention should be paid to how successful the bank was in implementing the tasks provided for in its previous business plans. It also emphasises the importance of operational risk management in banks, its structural changes in relation to the development of the bank’s activities, introduction of new financial services or products in the market. In the event of significant changes, the business plan is required to be adjusted. The responsibility for the approval of the business plan falls on the Supervisory Board of the bank.

5. Report on foreign reserve investment 2007
The Board of the Bank of Lithuania was presented a Report of Foreign Reserve Investment 2007 prepared by the Market Operations Department of the Bank of Lithuania.

The Report reviewed the trends of change in foreign reserve amounts, portfolio management results and their factors. The Board was introduced to the exchange rate and credit risk levels and the results of stress testing.

It should be noted that, as global financial markets experienced severe shocks in 2007, the Bank of Lithuania maintained low levels of risk and achieved high investment management performance. It received a positive assessment of the Bank of Lithuania.

6. On approval and announcement of medium term macroeconomic projections
The Board of the Bank of Lithuania approved medium term macroeconomic projections. They will be announced on the website of the Bank of Lithuania.

7. On approval of the sample 50 litas commemorative coin dedicated to the 550th birth anniversary of St Casimir
The Board of the Bank of Lithuania approved the sample 50 litas commemorative coin dedicated to the 550th birth anniversary of St Casimir.

The graphic design and the plaster model of this coin is by Giedrius Paulauskis. The coin sample was minted by UAB Lietuvos moneto kalykla (Lithuanian Mint).

The new coin is to be issued into circulation in the first quarter this year.