EN ECB -PUBLIC  
 
 
OPINION OF THE EUROPEAN CENTRAL BANK  
of 26 June  2013  
on Lietuvos bankas’ macro -prudential mandate  
(CON/20 13/45) 
 
Introduction and legal basis  
On 29 May 2013 the European Central Bank (ECB) received a request from the Lithuanian Ministry of 
Finance  for an o pinion on a draft law amending the Law on Lietuvos bankas (hereinafter the ‘draft law ’). 
The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union  and the third and sixth indent s of Article  2(1) of Council Decision 
98/415/EC of 29  June 1998 on the consultation of the European Central Bank by national authorities 
regarding draft legislative provisions1, as the draft law relates to Lietuvos bankas and rules applicable to 
financial institutions insofar as they materially influence the stability of financial institutions and markets . 
In accordance with the first sentence of Article  17.5 of the Rules of Procedure of the European Central 
Bank, the Governing Council has adopted this opin ion. 
 
1.  Purpose of the draft law  
1.1 The main aim of the draft law is to implement  Recommendation ESRB/2011/3 of the European 
Systemic Risk Board of 22 December 2011 on the macro -prudential mandate of national 
authorities2. 
1.2 More specifically, th e draft law designat es Lietuvos bankas as the authority responsible for  
establishing, publishing and implementing macro -prudential policy , and it assigns to Lietuvos 
bankas a number of tasks and grants it certain powers in order to achieve its objective s in thi s 
regard . The draft law also establishes a mechanism for cooperation at national and cross -border 
level , and gives  Lietuvos bankas the power to obtain relevant information.  
1.3 The draft law also contains provisions  which are not related to the implementat ion of 
Recommendation ESRB/2011/3 , i.e.: (a) an amendment to Article  27(3) of the Law on Lietuvos 
bankas under which loans provided by Lietuvos bankas to credit institutions may be secured by 
entering into an agreement with the credit institution  to transf er the title to financial collateral ; and 
(b) an amendment to Article 55 of the Law on Lietuvos bankas extending  the nature and frequency 
of the publication of statistical information . 
                                                 
1  OJ L 189, 3.7.1998, p. 42.  
2  OJ C 41, 14.2.2012, p. 1.  
ECB -PUBLIC  
2 1.4 The ECB was not consulted on the draft law amending the Law on Liet uvos bankas that will enter 
into force on the introduction of the euro in Lithuania3. If its provisions are similar to th ose of the 
draft law , the ECB’s observations concerning the  draft law as expressed in this opinion will apply 
by analogy to th at law al so. The ECB should be consulted on the draft law amending the Law on 
Lietuvos bankas that will enter into force on the introduction of the euro in Lithuania  in the event 
its provisions are substantially different from the provisions of the draft law.  
 
2. Lietuvos bankas’ macro -prudential mandate  
2.1 The ECB supports the design of effective  macro -prudential policy frameworks within Member 
States, in line with the guiding principles set out  in Recommendation ESRB/2011/3. Moreover, the 
ECB considers that the E CB and national central banks  should play a leading role in macro -
prudential oversight , given their expertise and existing responsibilities in the area of financial 
stability4. 
2.2 At the same time, performance by Lietuvos bankas of macro -prudential tasks should not affect:  
(a) Lietuvos bankas’  functional and financial independence ; or (b)  the performance by the 
European System of Central Banks of its tasks under the Treaty and the Statute of the European 
System of Central Banks and of the European Central Bank  (hereinafter the Statute of the ESCB)5. 
2.3 The ECB understands that current provisions of the Law on Lietuvos bankas ensuring L ietuvos 
bankas’ independence in implementing all its objectives and performing all its tasks and activities6, 
– and not merely those  in relation to maintaining price stability , also cover the establishment and 
implementation of macro -prudential policy.  
2.4 In addition, the ECB understands  that the draft law not only assigns a new task of Lietuvos bankas 
to perform macro -pruden tial oversight, but also establishes a new objective for Lietuvos bankas, 
namely to contribute to the stability of the financial system through its macro -prudential policy . In 
line with Article  127(1) of the Treaty and Article  2 of the Statute of the ESCB , this objective 
should be subordinate d to the primary  objective  of price stability . The draft l aw should be adapted 
to reflect this .  
2.5 Moreover, in line with Article  127(1) of the Treaty and Article  2 of the Statute of the ESCB, the 
secondary  objectives  of Lietuvos bankas should be  subordinate d to both the primary and the 
secondary objective s of the ESCB. This  is required for the full legal integration of Lietuvos bankas 
                                                 
3  Draft amendments to the Law amending Articles 1, 6, 7, 8, 11, 12, 14, 19, 20, 25, 31, 33, 35, 36, 38, 47, 49, 50, 53, 54, 
54(1), 55, titles of fourth and fifth sections, repealing Articles 26, 27, 28, 29, 30, 32, 37 and supplementing the Annex to 
the Law on Lietuvos bankas. Valstybės žinios , 29-04-2006, No 48 –1699. Pursuant to Article 33 of this Law, it will come 
into force on the date on which the Council of the European Union abrogates the derogation of Lithuania in accordance 
with the procedure laid down in Article 122(2) of the Treaty establishing the European Community.  
4  See paragraph 2.1 of Opinion CON/2013/30. All ECB opinions are published on the ECB’s website at 
www.ecb.europa.eu.  
5  See paragraph 2.3 of Opinion CON/2013/30.  
6  Article 3(2) of the Law on Lietuvos ba nkas.  
ECB -PUBLIC  
3 into the Eurosystem, and therefore a legislative provision  to this effect will need to enter into force 
on the date on which  Lithuania adopts the euro7. 
2.6 The provisions of the draft law regarding compensation for the damage caused by unlawful acts of 
Lietuvos bankas and its staff8 aim to implement Recommendation D4  of Recommendation 
ESRB/2011/39. They  repeat similar existing provision s of the Law on Lietuvos bankas regarding 
compensation for damage caused by unlawful acts related to the performance of financial market 
supervision10. However , these provisions of the draft law  do not expre ssly address 
Recommendation  D4, which calls for  legal protection of Lietuvos bankas and its staff when act ing 
in good faith.  In this respect, such legal protection  should  be provided for  in the draft law or, if it is 
already contained in  other laws11, the E CB recommends that the draft law includes a reference to  
such other laws . 
2.7 Pursuant to the draft law, Lietuvos bankas  is: (a) given the power  to obtain information necessary 
for the implementation of macro -prudential policy12; (b) oblig ed to ensure the c onfidentiality  of 
such information13; (c) mandated to cooperate and exchange information with the ESRB, macro -
prudential authorities and financial supervisory authorities of other Member S tates, third countries  
and Union institutions14. 
The draft law preclud es Lietuvos bankas from releasing such confidential information to anyone or 
otherwise ma king it available, except as specified by law15. The ECB understands that Lietuvos 
bankas’ obligation to cooperate and exchange information at national and cross -border  level16 is 
one of such cases specified by law.  
2.8 This opinion is without  prejudice to the conclusions of the follow -up assessment of the 
abovementioned recommendation , which the ESRB will prepare  in accordance with Article 17 of 
Regulation (EU) No 1092/2 010 of the European Parliament and of the Council of 
24 November  2010 on European Union macro -prudential oversight of the financial system and 
establishing a European Systemic Risk Board17. 
 
                                                 
7  See ECB’s Convergence Report of June 2013, p. 42.  
8  New Article 473 of the Law on Lietuvos bankas, contained in the draft law.  
9  Recommendation D4 recommends that Member States ensure legal protection for macro -prudential authorities and their 
staff when they act in good faith.  
10  Article 45 of the Law on Lietuvos bankas.  
11  For example, laws regulating civil liability matters in general , such as  the Civil Code.  
12  Recommendation C2 of Recommendation ESRB/2011/3, and its implementation by new Art icle 471(4)(2) of the Law on 
Lietuvos bankas, contained in the draft law.  
13  Recommendation C2 of Recommendation ESRB/2011/3, and its implementation by new Article 472 of the Law on 
Lietuvos bankas, contained in the draft law.  
14  Recommendation B4 of Recom mendation ESRB/2011/3, and its implementation by new Article 474 of the Law on 
Lietuvos bankas, contained in the draft law.  
15  New Article 472 of the Law on Lietuvos bankas, contained in the draft law.  
16  New Article 474(2) of the Law on Lietuvos bankas, c ontained in the draft law.  
17  OJ L 331, 15.12.2010, p. 1.  
ECB -PUBLIC  
4 3. Collateral for loans by Lietuvos bankas to credit institutions  
3.1 Article 27 of the Law on Lietuvos bankas currently permits  Lietuvos bankas to provide loans  
denominated  in lita i to credit institutions established in Lithuania , which have accounts with 
Lietuvos bankas. Such loans are to be granted against the followi ng types of collateral , which is  to 
be provided by the credit institution  concerned : (a)  Government or Lietuvos bankas’ debt 
securities; (b)  foreign currency or precious metal s; (c) promissory notes and other debt liabilities 
and immovable property which c omply with conditions laid down by Lietuvos bankas. In addition, 
loans can also be secured by means of a State guarantee or the surety or guarantee  of a credit 
institution . 
3.2 The draft law  provides that, in addition to the abovementioned types of collate ral, loans 
denominated in lita i granted by Lietuvos bankas to credit institutions may also be col lateralised by 
entering into an agreement with a credit institution  to transfer  the title to  financial collateral . 
3.3 The ECB notes that, although Member Stat es that have not adopted the euro retain competence in 
the field of monetary policy, it is nevertheless beneficial for them to achieve consistency with 
Eurosystem standards so that credit institutions in those Member States can become familiar with 
the Eur osystem eligibility criteria for marketable and non -marketable assets that will apply to them 
once the euro is introduced . The ECB understands that Article 27 of the Law on Lietuvos bankas  
will be repealed18 on the date on which the Council of the European Union abrogates the 
derogation of Lithuania in accord ance with  the procedure laid down in Article  140 of the Treaty , 
i.e. on the introduction  of the euro  in Lithuania . 
 
This opinion will be published on the ECB’s website.  
 
 
Done at Frankfurt am Main, 26 June 2013 . 
 
[signed]  
 
The President of the ECB  
Mario DRAGHI  
                                                 
18  Law amending Articles 1, 6, 7, 8, 11, 12, 14, 19, 20, 25, 31, 33, 35, 36, 38, 47, 49, 50, 53, 54, 54(1), 55, titles of fourth  
and fifth sections, repealing Articles 26, 27, 28, 29, 30, 32, 37 and  supplementing the Annex to the Law on Lietuvos 
bankas. Valstybės žinios , 29-04-2006, No 48 –1699. Pursuant to Article 33 of this Law, it will come into force on the date 
on which the Council of the European Union abrogates the derogation of Lithuania in ac cordance with the procedure laid 
down in Article 122(2) of the Treaty establishing the European Community.