Opinion of the European Central Bank of 26 June 2013 on Lietuvos bankas’ macro-prudential mandate (CON/2013/45)
Date: 2013-06-26
Institutions: European Central Bank
Subjects: Lithuania, central bank, competence of the institution, financial stability, financial supervision, national law

EN 

ECB-PUBLIC 

OPINION OF THE EUROPEAN CENTRAL BANK 

of 26 June 2013 

on Lietuvos bankas’ macro-prudential mandate 

(CON/2013/45) 

Introduction and legal basis 

On 29 May 2013 the European Central Bank (ECB) received a request from the Lithuanian Ministry of 

Finance for an opinion 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 indents  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 opinion. 

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,  the  draft  law  designates  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  objectives  in  this 

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  implementation  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 transfer 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. 

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2  

OJ L 189, 3.7.1998, p. 42. 
OJ C 41, 14.2.2012, p. 1. 

 
 
 
 
                                                 
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1.4  The ECB was not consulted on the draft law amending the Law on Lietuvos bankas that will enter 
into force on the introduction of the euro in Lithuania3. If its provisions are similar to those of the 

draft law, the ECB’s observations concerning the draft law as expressed in this opinion will apply 

by analogy to that law also. 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  ECB  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  Lietuvos 
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-prudential  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 subordinated to the primary objective of price stability. The draft law 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  subordinated  to  both  the  primary  and  the 

secondary objectives of the ESCB. This is required for the full legal integration of Lietuvos bankas 

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4  

5  
6  

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. 
See  paragraph  2.1  of  Opinion  CON/2013/30.  All  ECB  opinions  are  published  on  the  ECB’s  website  at 
www.ecb.europa.eu. 
See paragraph 2.3 of Opinion CON/2013/30. 
Article 3(2) of the Law on Lietuvos bankas. 

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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  provisions  of  the  Law  on  Lietuvos bankas  regarding 

compensation for damage caused by unlawful acts related to the performance of financial market 
supervision10.  However, 

law  do  not  expressly  address 

these  provisions  of 

the  draft 

Recommendation D4, which calls for legal protection of Lietuvos bankas and its staff when acting 

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 ECB 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) obliged  to  ensure  the  confidentiality  of 
such  information13;  (c) mandated  to  cooperate  and  exchange  information  with  the  ESRB,  macro-

prudential authorities and financial supervisory authorities of other Member States, third countries 
and Union institutions14. 

The draft law precludes Lietuvos bankas from releasing such confidential information to anyone or 
otherwise  making  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  1092/2010  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  
8  
9  

10  
11  
12  

13  

14  

15  
16  
17  

See ECB’s Convergence Report of June 2013, p. 42. 
New Article 473 of the Law on Lietuvos bankas, contained in the draft law. 
Recommendation D4 recommends that Member States ensure legal protection for macro-prudential authorities and their 
staff when they act in good faith. 
Article 45 of the Law on Lietuvos bankas. 
For example, laws regulating civil liability matters in general, such as the Civil Code. 
Recommendation C2 of Recommendation ESRB/2011/3, and its implementation by new Article 471(4)(2) of the Law on 
Lietuvos bankas, contained in the draft law. 
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. 
Recommendation  B4  of  Recommendation  ESRB/2011/3,  and  its  implementation  by  new  Article  474  of  the  Law  on 
Lietuvos bankas, contained in the draft law. 
New Article 472 of the Law on Lietuvos bankas, contained in the draft law. 
New Article 474(2) of the Law on Lietuvos bankas, contained in the draft law. 
OJ L 331, 15.12.2010, p. 1. 

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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  litai  to  credit  institutions  established  in  Lithuania,  which  have  accounts  with 

Lietuvos bankas. Such loans are to be granted against the following 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  metals;  (c) promissory  notes  and  other  debt  liabilities 

and immovable property which comply 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  collateral,  loans 

denominated in litai granted by Lietuvos bankas to credit institutions may also be collateralised by 

entering into an agreement with a credit institution to transfer the title to financial collateral. 

3.3  The ECB notes that, although Member States 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 Eurosystem 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 accordance 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 accordance with the procedure laid 
down in Article 122(2) of the Treaty establishing the European Community. 

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