According to World Economic Forum's Global Competitiveness Report 2017-2018, financial market development in Lithuania is scored 4.1 out of maximum 7.0 and ranked 59th out of 138 analysed economies, trustworthiness and confidence of financial market is scored 4.3 (65th place).
Chart 1. Financial Market Development in Lithuania. Source: WEF.
Soundness of banks is scored 4.8 bringing Lithuania into the 72nd place.
Chart 2. Soundness of Banks in Lithuania. Source: WEF.
Banks in Lithuania are mainly focused on the following areas:
Currently there are 86 credit institutions operating in Lithuania.
In 2018 consolidated banking assets in Lithuania were 28,620.25 mln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Lithuania.
Recent structural changes (2013 - 2018) of the banking sector of Lithuania are summarised in Table 1.
|Number of Opened Banks||1||1||2||0||0||4|
|Number of Closed Banks||3||3||1||2||5||1|
Table 1. Recent structural changes in the banking sector of Lithuania.
The list of the most recently opened banks in Lithuania is provided in Table 2.
|Akciju sabiedriba „Citadele banka” Lietuvos filialas (new)||December 2018|
|Luminor Bank AS Lietuvos skyrius (new)||July 2018|
|Kredito unija „Neris“ (new)||March 2018|
|Jungtinė centrinė kredito unija (new)||January 2018|
|Telia Finance AB Lietuvos filialas „Telia Finance Lietuva” (new)||October 2015|
|Scania Finans AB Lietuvos filialas (new)||July 2015|
|Nordea Bank AB Lietuvos skyrius (closed)||March 2014|
|Kredito unija „Saulėgrąža” (new)||August 2013|
Table 2. The most recently opened banks in Lithuania.
All the credit institutions operating in Lithuania can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||9|
There are 9 branches of foreign banks from 5 different countries in Lithuania. Table 4 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|
Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.
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 5.
Table 5. Deposit guarantee scheme in Lithuania.
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).
Chart 4. Deposit Rates in Lithuania. Source: ECB.