OREANDA-NEWS. On October 09, 2008 Reinoldijus Sarkinas, Chairman of the Board of the Bank of Lithuania, has taken part in a consultative meeting of the Lithuanian Confederation of Industrialists held in Vilnius and informed its participants about the situation of banks in Lithuania, gave answers to questions of industrialists, reported the press-centre of Bank of Lithuania.

He presented the participants with the newest data on loans issued by banks, deposits held with banks and noted: ”These figures suggest that the Lithuanian banking system is sound, the banks are working as usual, at their ordinary tempo.“

Reinoldijus Sarkinas informed industrialists and a group of journalists interested in this meeting that special services were investigating who had started to send short mobile messages urging the withdrawal of deposits from some banks.

According to the top manager of the Bank of Lithuania, the majority of the public understands that these are rumours posing threat to the financial stability. However, there were people who rushed to withdraw their deposits. ”Some time has to pass and these deposits will return to the banks, but the people who gave way to panic have already suffered a loss because they lost their interest rates“, - said Reinoldijus Sarkinas.

According to him, the Bank of Lithuania is ready to issue loans to national commercial banks in case they face some liquidity problems. However, the demand for such loans has not been observed so far, commercial banks have not asked for such a support.

Head of the Bank of Lithuania mentioned that on 1-3 October 2008 the amount of corporate deposits in commercial banks of Lithuania increased by LTL million, and of private persons - by LTL 57 million.

Chairman of the Board of the Bank of Lithuania admitted that commercial banks had tightened conditions for the issue of loans. However, he observed that crediting of businessmen projects was not reducing. Reinoldijus Sarkinas confirmed this statement by indicating that in the first 8 months of 2008 the banks had issued to corporations loans amounting to about LTL 5.2 billion, and about LTL 5 billion during the same period last year.

Reinoldijus Sarkinas stated that Lithuania had learnt from its own mistakes made during the 1994-1995 banking crisis. A stringent commercial banks supervision system has been developed, currently operating banks are conservative and cautious, interests of commercial bank depositors are protected by the Republic of Lithuania Law on Deposit Insurance and Insurance of Liabilities to Investors.

Stasys Kropas, President of the Association of Lithuanian Banks, heads of Swedbank (a new name of Hansabankas), DnB Nord, Snoras, Ukio bankas, Nordea Bank Lietuva confirmed in the meeting that national banks were working at their normal tempo.

Rimantas Sad?ius, Finance Minister, also participated in this meeting with industrialists.