Lithuania Offshore Bank Account
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Lithuania Offshore Bank Account

The information below provides details about the Lithuania banking system, and details on opening an Lithuania offshore bank account. You will find details on the laws and regulations that govern the banking system, as well as a list of local and international banks that operate in Lithuania.

WE CURRENTLY CANNOT ASSIST WITH THE OPENING OF LITHUANIA OFFSHORE BANK ACCOUNTS

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The Lithuania Banking System

The Bank of Lithuania is the central bank of the Republic of Lithuania. Its principal objective is to maintain price stability. In seeking its principal objective, the Bank of Lithuania is independent from the Government of the Republic of Lithuania or other institutions of the state.

The first private commercial banks in Lithuania were established in January 1989, while the central bank – Bank of Lithuania – was established a year later, i.e. in 1990. The reform of Lithuania’s state-owned banking sector was started in 1992, with the introduction of a standard two-tier banking system consisting of the central bank and the commercial banks. At present, the Bank of Lithuania has the exclusive right to grant and revoke licenses to local and foreign banks and to supervise their activities. The central bank also represents Lithuania in international banking institutions. (Lithuanian Development Agency; Bank of Lithuania)

Private commercial banking boomed from 1992 to 1994, while the regulatory agencies that were still in their infancy, could not keep up. However, in late 1995 most of the Lithuanian banks were shaken by the bank crisis, which weeded out a number of loss-making banks, and focused the authorities’ attention on the need for more effective regulation. As a result, far more rigorous sanctions for noncompliance of regulations were introduced, thus limiting the risk in commercial banking. International auditing standards became mandatory, and a system of deposit insurance was implemented. (EBRD’s Investment Profile 2001)

The tougher regulatory environment proved beneficial and showed positive results during the 1998 Russian financial crisis, as Lithuanian banks had only limited exposure to Russian securities and the Lithuanian banking system was stable again in less than a year. However, the crisis did lead to a lack of liquidity in some cases due to customer withdrawal and deposit currency switches. (EBRD’s Investment Profile 2001, CEEBIC)

After these crises, Lithuanian banks have experienced steady growth and continued consolidation. At the end of January 2000 the total assets of the Lithuanian banking institutions were USD 3.2 billion, which represented a 10% growth from 1999. In 1999 the assets grew by 20% and in 1998 by more than 30%. At the same time, the number of banks decreased from 28 (in 1995) to 9 at the end of 2001. The growth has continued, as the total assets reached EUR 4.596 billion in 2002. (CEEBIC; EBRD’s Investment Profile 2001)

As of May 2003, 9 commercial banks holding a license from the Bank of Lithuania, 6 foreign bank branches and 5 foreign banks’ representative offices are operating in the country. The three largest banks that dominate the sector with approximately 80% of total deposits and assets in 2002 were Hansabankas (former Savings Bank with a 27% market share), NORD/LB Lietuva (former Agricultural Bank with a share of 12.7%) and Vilniaus Bankas, the largest bank with approximately a 40% market share. Vilniaus Bankas is today almost totally acquired by the Swedish banking group Skandinaviska Enskilda Banken (SEB). At present, the Lithuanian banking sector is 100% private. The last state owned banks were Savings Bank and Agricultural Bank. Savings Bank was sold to Estonian Hansapank in 2001 and Agricultural Bank to German Norddeutsche Landesbank Girozentrale in February 2002. As a result, foreign capital dominates the Lithuanian banking industry, and in the beginning of 2002, the share of foreign capital accounted for 81%. (Bank of Lithuania)

List of banks currently operating in Lithuania;

Deposit Money Banks

Currently, 9 commercial banks holding a license from the Bank of Lithuania are operating in the country.

  • AB SEB bankas
  • AB bankas “Hansabankas”
  • AB DnB NORD bankas
  • AS Citadele Banka
  • AB Sampo bankas
  • AB Šiaulių bankas
  • AB Ūkio bankas
  • UAB Medicinos bankas

Foreign Banks Representative Offices

Currently, 5 foreign banks representative offices are operating in the country.

  • Balti Investeeringute Grupi Pank AS Representative Office
  • Representative office AB RIETUMU BANKA
  • Representative office AP Anlage & Privatbank AG
  • Representative office of Balkan Investment Bank AD Banja Luka
  • Representative office of Raiffeisen Bank Polska S.A.

Foreign Banks Branches

Currently, 6 foreign bank branches are operating in the country.

  • Allied Irish Banks, p.l.c. branch
  • AS “UniCredit Bank” Lithuania Branch
  • Bayerische Hypo – und Vereinsbank AG Vilniaus Branch
  • Balti Investeeringute Grupi Pank AS branch
  • MP Investment Bank hf. filialas Baltijos ðalyse
  • Nordea Bank Finland Plc Lietuvos Branch
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