Immigrants Must Know About Financial Environment In Lithuania

By Author: Ankit Pandey
Total Articles: 156
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Lithuanian economy has been in expansion mode and its progress is being appreciated by many across the globe, which has made this destination favorite of many immigration aspirants. It becomes imperative to gain some knowledge of basic sectors of economy that are functioning behind the scene and are influencing operations of various economic activities. Immigrants Must Know About Financial Environment In Lithuania.
Lithuanian financial economy can be bifurcated into 3 basic constituents i.e.

Banking
Insurance
Stock Markets

Banking in this former soviet bloc state is controlled by Bank of Lithuania which was restored in March 1990 after secession from USSR. This institution was proclaimed as primary financial body and was initially entrusted with duty of monitoring functions of other banks. With the time the jurisdiction and functionality of this institution expanded and today it serves as central monetary agency of country. This organization is a non-Eurozone member of central banks network of EU. The primary functions of this body include

Monitoring and regulating factors ...
... influencing price stability
Monitoring flow of national currency and releasing fresh currency into circulation
Laying guidelines and devising statutes and also enforcing monitory policy
Establishing and regulating exchange rates of domestic currency
Operating and nation' central treasury body

Other credit bodies functioning in Financial Sector Of Lithuania are

Asset management bank - AB "Turto bankas which is functioning under a special provision and serves in asset management assistance, loan recoveries etc
9 banking institutions are functioning under jurisdiction of Bank of Lithuania
12 branches of multinational banks functioning in country at present
Around 40 Credit unions

Financial sector has registered tremendous growth over last decade and in first period 2009 bank assets amounted to almost 81% to GDP and credit portfolio grew by EUR 20.7 Billions thus achieving a healthy credit to GDP ratio of 64%. At that juncture credit portfolio was at par with deposits. Except fall and contractions in 2008 - 2009 period there has been a healthy ratio and currently things are getting healthier.
There are currently over 30 insurance companies operating in this Baltic state. This sectoris also a growing sector and play an important pert in Financial Environment Of Lithuania. The operations, establishment and liquidation of insurance organizations are controlled by Insurance law of 1996 through insurance supervisory authority incorporated under this law. This law entrusts this body to control life and general insurance segments and also lay guidelines defined restrictions on investment of funds accumulated through insurance business.
Stock Markets form an integral part of Financial Environment Of Lithuania. Thereare 2 functional exchanges which are owned by NASDAC in majority. Stock market has grown phenomenally in business and listing of companies since their establishment in 1993. In 2012 18 more companies were qualified for listing in main list. As per figures of 2011, gross capitalization of organizations registered in Vilnius share exchange amounted to EUR 3, 14 billion.

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