IMF Staff Country Reports

Republic of Lithuania: Financial System Stability Assessment: Update

Publication Date:

April 22, 2008

Electronic Access:

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Summary:

Lithuania’s catch-up toward the European average has been impressive. This success has been coupled with the emergence of macroeconomic imbalances. The dominance of foreign-owned banks in the banking system constitutes both a source of strength and risk. Although stress tests indicate that the banking system is reasonably resilient to macroeconomic shocks, existing capital buffers might not be sufficient to cope with low probability extreme events, and strengthening the capital would be advisable. The government implemented a regulatory framework for Nonbank Financial Institution (NBFI) and a pension reform.

Series:

Country Report No. 2008/137

Subject:

Banking Commercial banks Credit risk Expenditure Financial institutions Financial regulation and supervision Financial sector policy and analysis Foreign banks Pension spending Stress testing