OREANDA-NEWS. June 15, 2009.

1. Results of inspection, supervisory review and assessment of AB DnB NORD bank

Taking into account the results of the inspection and the supervisory  review and assessment of AB DnB NORD bank, the Board of the Bank of Lithuania decided to obligate AB DnB NORD bank to prepare the action plan for the elimination of shortcomings related to bank risk management systems and other shortcomings that were ascertained during the inspection and to eliminate bank activity shortcomings indicated in the inspection report by 1 September 2009. The bank was also obligated to conduct an internal assessment of the bank’s capital adequacy and to submit the results of such assessment to the Bank of Lithuania by 10 August 2009.

2. Financial Stability Review (2009)

The Board of the Bank of Lithuania discussed the draft Financial Stability Review (2009). The Bank of Lithuania has been publishing such reviews once a year since 2006.

The foreword of the review states that, in analysing the situation in the domestic financial market, the Bank of Lithuania aims at informing market participants about the systemic risk related to their operations, therefore, the financial stability analysis differs from the ongoing supervision of credit and other financial market institutions, which is aimed at testing the operating risk of an individual institution. The main objective of the financial stability analysis is to identify both internal and external threats to the domestic financial system and to evaluate the system’s ability to withstand the effects of unfavourable internal and external shocks.

The new Financial Stability Review will soon be published on the website of the Bank of Lithuania.


3. Amendment of the Rules for the Administration of the Loan Risk Database

The Board of the Bank of Lithuania decided to amend the Rules for the Administration of the Loan Risk Database in order to harmonise them with the new wording of the Republic of Lithuania Law on the Legal Protection of Personal Data that became effective this year.