|Population (2016)||2 888 558 (-0.01%)|
|EU Status||member since 2004|
|National Currency||EUR (Euro) since 1 January 2015|
|Nominal GDP (2015)||37.2 bln EUR (+0.02%)|
|Nominal GDP per Capita (2015)||12 800 EUR (+0.03%)|
|Real GDP Growth (2015)||1.6 % (2014: 2.9 %)|
|CPI, MoM (Sep 2016)||0.8 % (Aug 2016: -0.4 %)|
|CPI, YoY (Sep 2016)||0.6 % (Aug 2016: 0.5 %)|
|CPI, Year Average (2015)||-0.7 % (2014: 0.2 %)|
|Unemployment Rate (2015)||9.1 % (2014: 10.4 %)|
|Government Bond Yield (Sep 2016)||0.79 % (Aug 2016: 0.86 %)|
|Credit Ratings (as of Sep 2016)|
|Fitch||A-||high credit quality, outlook stable|
|Moody's||A3||upper medium grade, outlook stable|
|S&P||A-||upper medium grade|
|Double Taxation Agreements||55 signed agreements|
|Exchange on Request||1 signed agreements|
|Automatic Exchange||starts in September 2017|
|FATCA||IGA in effect since 26 August 2014, Model 1|
|Financial Market Development||4.1 (max 7.0)||rank: 60th out of 138 countries|
|Banks' Soundness||4.8 (max 7.0)||rank: 71st out of 138 countries|
|Banking Industry Country Risk||7||(1 - lowest risk, 10 - highest risk)|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||100 000 EUR|
|Country Ceiling for Deposits|
|Local Currency (Euro)||Aaa||prime|
|Deposit Rates (Aug 2016, EUR)||0.13 % (Jul 2016: 0.11 %)|
|Banking Sector Structure|
|Number of Banks||89|
|Recent Changes (2015)||new banks: 2, closed banks: 1|
|Consolidated Assets (2015)||23 436.81 mln EUR (-2.87%)|
|AB „Swedbank“||AB DNB bankas|
|AB SEB bankas|
|List of Banks in Lithuania|
Lithuania joined the Euro Area on 1 January 2015. The preceding national currency, Lithuanian litas (LTL), was replaced by Euro.
According to Eurostat, nominal GDP of Lithuania in 2015 was 37.2 bln EUR.
Lithuania outperforms the European Union in terms of real GDP growth with the average annual differential coming to 1.6% over the past 10 years (2005 - 2015). In 2015 real GDP growth was 1.6% which was equal to the Euro Area average (1.6%) and below the European Union average (1.9%). Real GDP growth in 2016 - 2021 are IMF's estimates.
In 2015, nominal GDP per capita in Lithuania was 12 800 EUR.
Lithuania has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -19.5% over the past 10 years (2005 - 2015). GDP per capita at PPP in 2016 - 2021 are IMF's estimates.
According to Eurostat, inflation rate in Lithuania in 2015 expressed as annual percentages of average consumer prices was -0.7% which was below the Euro Area average (0.0%) and below the European Union average (0.0%). Inflation rates in 2016 - 2021 are IMF's estimates.
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Lithuania signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Lithuania and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 01 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
There are also several agreements between Lithuania and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Lithuania signed the automatic information exchange agreement on 29 October 2014 and committed to start the automatic information exchange in September 2017.
Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).
Lithuania has FATCA agreement with the U.S. in effect since 26 August 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Lithuania are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is reciprocal: Lithuanian financial accounts hold in U.S. financial institutions will be reported to Lithuanian authorities.
FATCA and European countries
According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Lithuania is scored 4.1 out of maximum 7.0 and ranked 60th out of 138 analysed economies. Soundness of banks is scored 4.8 bringing Lithuania into the 71st place, trustworthiness and confidence of financial market is scored 4.3 (61st place).
Banking Industry Country Risk Assessment (BICRA) is a methodology designed by Standard&Poor's "to evaluate and compare global banking systems". A BICRA is scored on a scale from 1 to 10, ranging from the lowest-risk banking systems (group 1) to the highest-risk (group 10). The BICRA methodology has two main analytical components: "economic risk" and "industry risk". Each of the components is then further divided into 3 "factors" that result in an economic and industry risk score for each country.
Lithuania is included into group '7' with economic risk scored '7' and industry risk scored '7'.
|Credit risk in economy||high|
|Systemwide funding||very high|
|Government support assessment||supportive|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Lithuania are summarised in Table 2.
|Scheme Participants||all credit institutions operating in Lithuania (including branches of foreign banks), branches of Lithuanian banks abroad|
|Eligible Depositors||natural persons, legal entities|
|Covered Accounts||all deposit accounts|
|Maximum Protected Amount||100 000 EUR|
|Paid In Currency||EUR|
Table 2. Deposit guarantee scheme in Lithuania.
Deposit Guarantee Schemes in Europe
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Euro) deposit ceiling for Lithuania is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Currently there are 89 credit institutions operating in Lithuania.
Recent structural changes (2013 - 2015) of the banking sector of Lithuania are summarised in Table 3.
|Number of Opened Banks||1||1||2|
|Number of Closed Banks||3||3||1|
Table 3. Recent structural changes in the banking sector of Lithuania.
All the credit institutions operating in Lithuania can be classified into several categories. Table 4 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||8|
The list of the most recently opened banks in Lithuania is provided in Table 5.
|Telia Finance AB Lietuvos filialas „Telia Finance Lietuva” (new)||October 2015|
|Scania Finans Aktiebolag Lietuvos filialas (new)||July 2015|
|Nordea Bank AB Lietuvos skyrius (new)||March 2014|
|Kredito unija „Saulėgrąža” (new)||August 2013|
Table 5. The most recently opened banks in Lithuania.
There are 8 branches of foreign banks from 5 different countries in Lithuania. Table 6 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|