Banks, Deposits, Financial Services, Lithuania, Loan

Banks expect to earn more by applying commissions on other services. The portfolio of the banks in Lithuania last year increased by more than 1% or almost LTL 170 million (EUR 49 million), and households in the country borrowed less than repaid loans.

Meanwhile, the deposit funds in banks increased by 10% in a year and broke an all-time record – more than LTL 43.5 billion (EUR 13 billion). These data was provided in the latest Financial Stability Report by the Bank of Lithuania.

The survey of banks in April conducted by the Bank of Lithuania showed that the loan portfolio could increase by 1-5% this year and by 3-8% the next year. According to Stasys Kropas, President of the Association of Lithuanian Banks, it is unlikely that the volume of bank loans could considerably increase.

"I really do not see any possibilities that loans would go back to the pre-crisis level. The lessons of the crisis and the new regulation environment do not allow it, and the demand for loans will not become as it was before for a long time. Both households and companies are more cautious.