OREANDA-NEWS. June 21, 2010.

1. Results of inspection, supervisory review and assessment of AB DnB NORD bank
The Bank of Lithuania Board was informed about the results of inspection, supervisory review and assessment of AB DnB NORD bank. The inspection focused on the bank management, internal control, and management of individual risks (credit, liquidity, market and operational). Also, separate issues of the Internal Capital Adequacy Assessment Process were considered, reported the press-centre of Bank of Lithuania.   

During the inspection some deficiencies in the operation of the bank were identified. The Board of the Bank of Lithuania instructed AB DnB NORD bank to prepare the Action Plan for elimination of shortcomings related to the bank's risk management and internal control systems and other shortcomings of the bank’s operation established during the inspection and submit it to the Bank of Lithuania. AB DnB bank was instructed to eliminate the shortcomings of the bank’s operation established during the inspection and supervisory review and assessment by 1 October 2010. Moreover, the bank was obligated to perform the Internal Capital Adequacy Assessment Process with regard to observations expressed during the supervisory review and assessment and submit the results of this assessment to the Bank of Lithuania.

2. Permission to register amendments to the articles of association of AB Siauliu bankas
The Bank of Lithuania Board permitted the AB Siauliu bankas to register an amendment to its articles of association in relation to the increase of the bank authorised capital to LTL 204 857533, adopted an the extra-ordinary general shareholders’ meeting on 18 May 2010.

Siauliu bankas pointed out the development of the scope of banking services provided by the bank and strengthening of its capital base as the main objectives for the increase of its authorised capital.

3. Financial Stability Review (2010)
The Bank of Lithuania Board was presented the Financial Stability Review for 2010 and approved it.

The purpose of the Financial Stability Review prepared by the Bank of Lithuania and published once a year is to make an analytical assessment of the changes in the domestic financial system, the situation of the banking system and its debtors - households and non-financial enterprises - and their ability to withstand external and internal macroeconomic environment changes. Published financial stability reviews are expected to add to a comprehensive assessment of all potential risks endangering the Lithuanian financial system, its ability to withstand the impact of these risks, and are also expected to encourage discussions on the issues of financial stability between financial market participants, economists and all those interested in financial markets.

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