Banks, Deposits, Financial Services, Lithuania, Loan

All of the banks operating in Lithuania comply with the stricter European prudential requirements for banking activities that have come into effect, the Bank of Lithuania reports.

On 1 July, the assets managed by the banking sector amounted to LTL 78.5 billion (EUR 22.7 billion) over the half-year it increased by 1.2%. The loan portfolio also grew and made up the largest share of the bank assets, amounting to LTL 51 billion (EUR 14.8 billion). Although interest on deposits remains at a record low, the commercial bank deposit portfolio increased by 2.7% to LTL 48.9 billion (EUR 14.2 billion).

"This year, for the banking sector, was significant both in the preparations for the euro adoption and in the sense of European requirements. The newest data shows that all banks comply with the prudential requirements," says Vytautas Valvonis, director of the Supervision Service of Lithuania's central bank.

The banking performance this year will be affected by the euro adoption as it is projected that in 2014 banks will have to experience about LTL 100 million (EUR 28.9 million) in euro adoption-related expenses, while in the future they will not receive almost LTL 110 million (EUR 31.9 million) in income from currency exchange services, the Bank of Lithuania said.