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Tuesday, 09.06.2026, 12:08
Worsened situation in municipalities, unbalanced credit unions threatens Lithuania's financial system
BC, Vilnius, 12.06.2013.
Print version
Print versionLithuania's financial system is enough resilient to big and unexpected shocks. On the other hand, credit unions must strengthen their capability to withstand potential risks, says the Bank of Lithuania in its latest Financial Stability Report. The two possible challenges to the country's financial system are the worsening financial situation of municipalities and unbalanced activities of credit unions, writes LETA/ELTA.
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"Year 2012 was exceptional in one aspect. At the beginning of the year we took aggressive and radical actions", said Vitas Vasiliauskas, Chairman of the Board of the Bank of Lithuania reminding of the liquidation of the Ukio bank and some credit institutions during the presentation the Financial Stability Report on Wednesday.
According to Vasiliauskas, the main prudential indicators were that the capital of banks was twice larger than requested and banks held larger than the required liquidity reserves.
The Bank of Lithuania states that in 2012 the loan portfolio increased by more than 1 percent or LTL 17 million (EUR 5 million), banks were more in favor of borrowing.
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