The article analyzes the problem of central bank independence a historical, theoretical, and practice terms. The independence of the arguments raised, disclosed in its essence, defines the limits of independence, the transparency of the operation in question. Accessible to the conclusion that the central bank should be independent from the government, while its activity in combination with the legislative and executive state institutions. The study examined the context of changes in European economic and monetary union within the independence dimension of the European System of Central Banks in format. Determined that under these conditions in some areas of the national central banks have independence, the other – the European Central Bank uses the services of national central banks, in addition to another – the European Central Bank is fully independent.
The article analyzes the problem of central bank independence a historical, theoretical, and practice terms. The independence of the arguments raised, disclosed in its essence, defines the limits of independence, the transparency of the operation in question. Accessible to the conclusion that the central bank should be independent from the government, while its activity in combination with the legislative and executive state institutions. The study examined the context of changes in European economic and monetary union within the independence dimension of the European System of Central Banks in format. Determined that under these conditions in some areas of the national central banks have independence, the other – the European Central Bank uses the services of national central banks, in addition to another – the European Central Bank is fully independent.
The article analyzes the problem of central bank independence a historical, theoretical, and practice terms. The independence of the arguments raised, disclosed in its essence, defines the limits of independence, the transparency of the operation in question. Accessible to the conclusion that the central bank should be independent from the government, while its activity in combination with the legislative and executive state institutions. The study examined the context of changes in European economic and monetary union within the independence dimension of the European System of Central Banks in format. Determined that under these conditions in some areas of the national central banks have independence, the other – the European Central Bank uses the services of national central banks, in addition to another – the European Central Bank is fully independent.
The article analyzes the problem of central bank independence a historical, theoretical, and practice terms. The independence of the arguments raised, disclosed in its essence, defines the limits of independence, the transparency of the operation in question. Accessible to the conclusion that the central bank should be independent from the government, while its activity in combination with the legislative and executive state institutions. The study examined the context of changes in European economic and monetary union within the independence dimension of the European System of Central Banks in format. Determined that under these conditions in some areas of the national central banks have independence, the other – the European Central Bank uses the services of national central banks, in addition to another – the European Central Bank is fully independent.
Recently, the banking industry has faced considerable challenges in Lithuania. Two banks faced insolvency almost in a year's time. These cases subsequently have undergone dramatic changes in society, which now has a new legal viewpoint. Resolution and the bail-out of failing banks have an impact on the perceived credit risk as well as the financial soundness and the solvency of banks. Besides, they lead to many legal issues, which should be investigated at a scientific level. Regarding bank insolvency proceedings, essentially there are two options: direct liquidation (bank bankruptcy) or bank resolution (different legal techniques of restructuring). The main objective of bank restructuring is to restore individual banks or their solvency, merge, sell, or recapitalize banks, recover assets, operations and procedures. On the other hand, the main objectives of bank liquidation are to reduce creditors' losses and to eliminate insolvent banks from the market under the regular insolvency procedures. The main objective of the paper is to analyze bank resolution methods from the perspective of Lithuanian law. Bank insolvency law is not analyzed and investigated essentially in the Lithuania's scientific field. Two issues are analyzed in this paper: legal options and legal mechanisms of bank resolution and, on top of that, effects of implementing bank resolution tools. Resolution tools are interconnected with recent Lithuanian bank insolvency cases and based on their practice. The main aim of the article is to analyze, investigate and expose bank resolution techniques according to the Lithuanian law system. The statements are derived from analyses of scientific literature, relevant legislation, practice of the courts and relevant reports. The paper is written from the perspective of Lithuanian law.
Recently, the banking industry has faced considerable challenges in Lithuania. Two banks faced insolvency almost in a year's time. These cases subsequently have undergone dramatic changes in society, which now has a new legal viewpoint. Resolution and the bail-out of failing banks have an impact on the perceived credit risk as well as the financial soundness and the solvency of banks. Besides, they lead to many legal issues, which should be investigated at a scientific level. Regarding bank insolvency proceedings, essentially there are two options: direct liquidation (bank bankruptcy) or bank resolution (different legal techniques of restructuring). The main objective of bank restructuring is to restore individual banks or their solvency, merge, sell, or recapitalize banks, recover assets, operations and procedures. On the other hand, the main objectives of bank liquidation are to reduce creditors' losses and to eliminate insolvent banks from the market under the regular insolvency procedures. The main objective of the paper is to analyze bank resolution methods from the perspective of Lithuanian law. Bank insolvency law is not analyzed and investigated essentially in the Lithuania's scientific field. Two issues are analyzed in this paper: legal options and legal mechanisms of bank resolution and, on top of that, effects of implementing bank resolution tools. Resolution tools are interconnected with recent Lithuanian bank insolvency cases and based on their practice. The main aim of the article is to analyze, investigate and expose bank resolution techniques according to the Lithuanian law system. The statements are derived from analyses of scientific literature, relevant legislation, practice of the courts and relevant reports. The paper is written from the perspective of Lithuanian law.
Work topicality. In these days, an unstable economic situation in Lithuania, increasing of competition, foreign banks' penetration in the Lithuanian banking market, forcing banks to pay attention not only to the activities developed in its quality, but also the challenges: how to raise money so the banks can provide liquidity and lending to customers. The crisis of 2007 in the financial market is also requiring for greater attention of banks for effective emphasis on banks' liquidity risk assessment and management. EU, financial professionals and researchers are focused in to new ways of raising banks assets to ensure liquidity and to develop further activities. Work object – Method of securitization in Lithuania. Work aim – Identify the opportunities to adapt the method of securitization in Lithuanian commercial banks. Work tasks to achieve this aim: 1. Define the securitization, its development process, determine the benefits and advantages of the method compared with the classical bank financing satin. 2. Make securitization environmental analysis of the EU's commercial banking and financial system based on indicators. 3. To make a research of RL legislation and securities market research, to analyze Lithuanian commercial banks 'financial position, based on banks' liquidity and justify the adaptation of the securitization method in Lithuania. Work structure. The work consists of three main parts. The first section gives an overview securitization method and of diagrams showing how the banks' illiquid assets converted to cash. Define the application of this method to solve the liquidity problems of banks. Securitization forms and their impact on the financial system are analyzed. In the second part are dealing EU's commercial banking system and its structure. Described, major European bourse, observed the repartition of bonds by country publisher and an overview of country experience with securitization method. Identified how the EMU system coordinates the banking system, how help banks to provide liquidity and others. In the third part focuses on the Lithuanian legislation, the liquidity of banks as risk management tools and securities market analysis. Investigated, whether the existing legislation in Lithuania provides the opportunity to develop a method of securitization in Lithuanian commercial banks, calculated the Bank's liquidity indicators in order to find out how commercial banks manage risk. Main results - the present analysis shows that there are all the conditions necessary for the Lithuanian securities market development (the country's accession to the EU, the Vilnius Stock Exchange's integration into a common Nordic and Baltic stock exchange system). In Baltic debt securities market, securitization could help to increase the volume of the primary market and stimulate the secondary market for debt securities. In the legislation RL, there are no objections to apply the method of securitization in Lithuania. It is legally regulated only by mortgage bonds. However, in order to validate other forms of securitization and to allow the ABS and MBS in Lithuania, the legislation should be corrected and the new one accepted. It was found that securitized the loans could AB "SEB", AB "Swedbank" and DnB "NORD" banks.
Work topicality. In these days, an unstable economic situation in Lithuania, increasing of competition, foreign banks' penetration in the Lithuanian banking market, forcing banks to pay attention not only to the activities developed in its quality, but also the challenges: how to raise money so the banks can provide liquidity and lending to customers. The crisis of 2007 in the financial market is also requiring for greater attention of banks for effective emphasis on banks' liquidity risk assessment and management. EU, financial professionals and researchers are focused in to new ways of raising banks assets to ensure liquidity and to develop further activities. Work object – Method of securitization in Lithuania. Work aim – Identify the opportunities to adapt the method of securitization in Lithuanian commercial banks. Work tasks to achieve this aim: 1. Define the securitization, its development process, determine the benefits and advantages of the method compared with the classical bank financing satin. 2. Make securitization environmental analysis of the EU's commercial banking and financial system based on indicators. 3. To make a research of RL legislation and securities market research, to analyze Lithuanian commercial banks 'financial position, based on banks' liquidity and justify the adaptation of the securitization method in Lithuania. Work structure. The work consists of three main parts. The first section gives an overview securitization method and of diagrams showing how the banks' illiquid assets converted to cash. Define the application of this method to solve the liquidity problems of banks. Securitization forms and their impact on the financial system are analyzed. In the second part are dealing EU's commercial banking system and its structure. Described, major European bourse, observed the repartition of bonds by country publisher and an overview of country experience with securitization method. Identified how the EMU system coordinates the banking system, how help banks to provide liquidity and others. In the third part focuses on the Lithuanian legislation, the liquidity of banks as risk management tools and securities market analysis. Investigated, whether the existing legislation in Lithuania provides the opportunity to develop a method of securitization in Lithuanian commercial banks, calculated the Bank's liquidity indicators in order to find out how commercial banks manage risk. Main results - the present analysis shows that there are all the conditions necessary for the Lithuanian securities market development (the country's accession to the EU, the Vilnius Stock Exchange's integration into a common Nordic and Baltic stock exchange system). In Baltic debt securities market, securitization could help to increase the volume of the primary market and stimulate the secondary market for debt securities. In the legislation RL, there are no objections to apply the method of securitization in Lithuania. It is legally regulated only by mortgage bonds. However, in order to validate other forms of securitization and to allow the ABS and MBS in Lithuania, the legislation should be corrected and the new one accepted. It was found that securitized the loans could AB "SEB", AB "Swedbank" and DnB "NORD" banks.
The paper attempts to reconstruct the picture of the state savings bank system and its structure in Lithuanian governorates in the beginning of the 20th century. The same economic, political, social contradictions as in the whole credit system of the lagging behind Russian Empire as compared with Western European states were typical in the creation and activity of savings banks. Among other means (accumulation of land in the hands of Russians, colonial policy of taxes and customs), discriminative credit policies were used. The formation of credit resources using savings of the occupied countries also served for the imperial purposes of Russia. The opening and activities of savings banks were regulated by special statutes in which the objective of savings banks was indicated: to provide the possibility for poor people to accumulate funds in small amounts and get interest for them. However, the operations of savings banks were trivial, they managed to accumulate only very small amounts of money. In 1895, the new Statute of savings banks was approved and they were called State Savings Banks. The State Bank of Russia headed over the savings banks. According to the new Statute, the order of the opening of savings banks was easier. It became possible to open state savings banks and their branches in all cities and settlements - at the State Bank, treasuries, customs, at all governmental and public offices, private offices and enterprises. The spread of the network of savings banks became easier, deposits grew up. Deposits in saving banks in the period 1899-1913 increased rather rapidly: in the Vilnius governorate 2.9, in Kaunas 2.6, and in Suvalkai 3.1 times. The number of savings banks in Lithuanian governorates in this period increased 1.45 times. At the beginning of 1913, in Lithuanian governorates operated 29 central savings banks and one city branch, 241 savings banks at post offices, 11 at railway stations, and 2 saving banks in factories. The number of all V types of savings banks was biggest in Siauliai district (22), Vilnius and Raseiniai districts (21 in each), and the smallest in Naumiestis district (4). The biggest amount of deposits in total, its average per one savings bank, and the average amount of passbooks per one saving bank was in the Vilnius governorate and the smallest in the Suvalkai governorate. The average biggest amount of passbooks in savings banks per one thousand inhabitants was in the Vilnius governorate and the smallest in the Suvalkai governorate, too. Savings banks' deposit funds were invested in state bonds. Formation of the credit resources of the Russian Empire using savings of people of the occupied countries was one of the means of the realization of Russia's colonial policy. The Lithuanian deposit funds brought away from Lithuania have never been returned.
The paper attempts to reconstruct the picture of the state savings bank system and its structure in Lithuanian governorates in the beginning of the 20th century. The same economic, political, social contradictions as in the whole credit system of the lagging behind Russian Empire as compared with Western European states were typical in the creation and activity of savings banks. Among other means (accumulation of land in the hands of Russians, colonial policy of taxes and customs), discriminative credit policies were used. The formation of credit resources using savings of the occupied countries also served for the imperial purposes of Russia. The opening and activities of savings banks were regulated by special statutes in which the objective of savings banks was indicated: to provide the possibility for poor people to accumulate funds in small amounts and get interest for them. However, the operations of savings banks were trivial, they managed to accumulate only very small amounts of money. In 1895, the new Statute of savings banks was approved and they were called State Savings Banks. The State Bank of Russia headed over the savings banks. According to the new Statute, the order of the opening of savings banks was easier. It became possible to open state savings banks and their branches in all cities and settlements - at the State Bank, treasuries, customs, at all governmental and public offices, private offices and enterprises. The spread of the network of savings banks became easier, deposits grew up. Deposits in saving banks in the period 1899-1913 increased rather rapidly: in the Vilnius governorate 2.9, in Kaunas 2.6, and in Suvalkai 3.1 times. The number of savings banks in Lithuanian governorates in this period increased 1.45 times. At the beginning of 1913, in Lithuanian governorates operated 29 central savings banks and one city branch, 241 savings banks at post offices, 11 at railway stations, and 2 saving banks in factories. The number of all V types of savings banks was biggest in Siauliai district (22), Vilnius and Raseiniai districts (21 in each), and the smallest in Naumiestis district (4). The biggest amount of deposits in total, its average per one savings bank, and the average amount of passbooks per one saving bank was in the Vilnius governorate and the smallest in the Suvalkai governorate. The average biggest amount of passbooks in savings banks per one thousand inhabitants was in the Vilnius governorate and the smallest in the Suvalkai governorate, too. Savings banks' deposit funds were invested in state bonds. Formation of the credit resources of the Russian Empire using savings of people of the occupied countries was one of the means of the realization of Russia's colonial policy. The Lithuanian deposit funds brought away from Lithuania have never been returned.
The paper attempts to reconstruct the picture of the state savings bank system and its structure in Lithuanian governorates in the beginning of the 20th century. The same economic, political, social contradictions as in the whole credit system of the lagging behind Russian Empire as compared with Western European states were typical in the creation and activity of savings banks. Among other means (accumulation of land in the hands of Russians, colonial policy of taxes and customs), discriminative credit policies were used. The formation of credit resources using savings of the occupied countries also served for the imperial purposes of Russia. The opening and activities of savings banks were regulated by special statutes in which the objective of savings banks was indicated: to provide the possibility for poor people to accumulate funds in small amounts and get interest for them. However, the operations of savings banks were trivial, they managed to accumulate only very small amounts of money. In 1895, the new Statute of savings banks was approved and they were called State Savings Banks. The State Bank of Russia headed over the savings banks. According to the new Statute, the order of the opening of savings banks was easier. It became possible to open state savings banks and their branches in all cities and settlements - at the State Bank, treasuries, customs, at all governmental and public offices, private offices and enterprises. The spread of the network of savings banks became easier, deposits grew up. Deposits in saving banks in the period 1899-1913 increased rather rapidly: in the Vilnius governorate 2.9, in Kaunas 2.6, and in Suvalkai 3.1 times. The number of savings banks in Lithuanian governorates in this period increased 1.45 times. At the beginning of 1913, in Lithuanian governorates operated 29 central savings banks and one city branch, 241 savings banks at post offices, 11 at railway stations, and 2 saving banks in factories. The number of all V types of savings banks was biggest in Siauliai district (22), Vilnius and Raseiniai districts (21 in each), and the smallest in Naumiestis district (4). The biggest amount of deposits in total, its average per one savings bank, and the average amount of passbooks per one saving bank was in the Vilnius governorate and the smallest in the Suvalkai governorate. The average biggest amount of passbooks in savings banks per one thousand inhabitants was in the Vilnius governorate and the smallest in the Suvalkai governorate, too. Savings banks' deposit funds were invested in state bonds. Formation of the credit resources of the Russian Empire using savings of people of the occupied countries was one of the means of the realization of Russia's colonial policy. The Lithuanian deposit funds brought away from Lithuania have never been returned.
The paper attempts to reconstruct the picture of the state savings bank system and its structure in Lithuanian governorates in the beginning of the 20th century. The same economic, political, social contradictions as in the whole credit system of the lagging behind Russian Empire as compared with Western European states were typical in the creation and activity of savings banks. Among other means (accumulation of land in the hands of Russians, colonial policy of taxes and customs), discriminative credit policies were used. The formation of credit resources using savings of the occupied countries also served for the imperial purposes of Russia. The opening and activities of savings banks were regulated by special statutes in which the objective of savings banks was indicated: to provide the possibility for poor people to accumulate funds in small amounts and get interest for them. However, the operations of savings banks were trivial, they managed to accumulate only very small amounts of money. In 1895, the new Statute of savings banks was approved and they were called State Savings Banks. The State Bank of Russia headed over the savings banks. According to the new Statute, the order of the opening of savings banks was easier. It became possible to open state savings banks and their branches in all cities and settlements - at the State Bank, treasuries, customs, at all governmental and public offices, private offices and enterprises. The spread of the network of savings banks became easier, deposits grew up. Deposits in saving banks in the period 1899-1913 increased rather rapidly: in the Vilnius governorate 2.9, in Kaunas 2.6, and in Suvalkai 3.1 times. The number of savings banks in Lithuanian governorates in this period increased 1.45 times. At the beginning of 1913, in Lithuanian governorates operated 29 central savings banks and one city branch, 241 savings banks at post offices, 11 at railway stations, and 2 saving banks in factories. The number of all V types of savings banks was biggest in Siauliai district (22), Vilnius and Raseiniai districts (21 in each), and the smallest in Naumiestis district (4). The biggest amount of deposits in total, its average per one savings bank, and the average amount of passbooks per one saving bank was in the Vilnius governorate and the smallest in the Suvalkai governorate. The average biggest amount of passbooks in savings banks per one thousand inhabitants was in the Vilnius governorate and the smallest in the Suvalkai governorate, too. Savings banks' deposit funds were invested in state bonds. Formation of the credit resources of the Russian Empire using savings of people of the occupied countries was one of the means of the realization of Russia's colonial policy. The Lithuanian deposit funds brought away from Lithuania have never been returned.
The study aims to explain why European banks had different positions towards establishing the EU banking union. Most of the academic publications dedicated to analyze the very recently implemented EU financial sector reforms give particular attention to explaining why different EU member states opposed the creation of a full banking union as it was proposed by the European Commission while there is a lack of academic discussions raising the question of how to explain that European banks also had different positions towards the implementation of single supervisory and resolution mechanisms. The research poses the question of how to explain different banks' positions towards the creation of the EU banking union. While some international banks were strongly promoting the new supranational supervisory and resolution mechanisms which would be applied to the whole EU banking sector the others voiced strong opposition to the points of governance and application scope of proposed EU banking sector reforms. The overall aim of the study is to give the possible explanation of why different banks had different positions towards shaping the EU banking union. The study is based on the hypothesis that highly internationalized banks preferred greater European regulatory harmonization in the banking supervision and resolution (creating single supervisory and resolution mechanisms which would include all euro zone banks, supranational governance of banking resolution and high degree of risk sharing) while low internationalized banks preferred more the national regulatory autonomy. The research is based on the theoretical framework suggested by A. Spendzharova. The author argues that the level of bank internationalisation is an important determinant of the extent to which governments were prepared to endorse European solutions in banking supervision and resolution or prefer the national regulation. The proposed framework of the analysis has been applied to analyse countries' positions but it has not been applied to explain banks' preferences on the proposed elements of the EU banking union. The conducted analysis revealed that the internationalisation level alone cannot fully explain the positions of the banks on the creation of the EU banking union. The analysis of 20 biggest European banks varying from global to local banks revealed that despite being internationalized differently the majority of the banks supported the creation of the common supervisory and resolution mechanisms which would be applied to all euro zone banks. Even banks having a low internationalisation level supported the creation of the proposed EU banking union and vice versa. It can be also noted, that the majority of the banks voiced the support for the supranational governance of the single resolution mechanism but opposed the high degree of risk sharing – the creation of the ex ante resolution fund.
The study aims to explain why European banks had different positions towards establishing the EU banking union. Most of the academic publications dedicated to analyze the very recently implemented EU financial sector reforms give particular attention to explaining why different EU member states opposed the creation of a full banking union as it was proposed by the European Commission while there is a lack of academic discussions raising the question of how to explain that European banks also had different positions towards the implementation of single supervisory and resolution mechanisms. The research poses the question of how to explain different banks' positions towards the creation of the EU banking union. While some international banks were strongly promoting the new supranational supervisory and resolution mechanisms which would be applied to the whole EU banking sector the others voiced strong opposition to the points of governance and application scope of proposed EU banking sector reforms. The overall aim of the study is to give the possible explanation of why different banks had different positions towards shaping the EU banking union. The study is based on the hypothesis that highly internationalized banks preferred greater European regulatory harmonization in the banking supervision and resolution (creating single supervisory and resolution mechanisms which would include all euro zone banks, supranational governance of banking resolution and high degree of risk sharing) while low internationalized banks preferred more the national regulatory autonomy. The research is based on the theoretical framework suggested by A. Spendzharova. The author argues that the level of bank internationalisation is an important determinant of the extent to which governments were prepared to endorse European solutions in banking supervision and resolution or prefer the national regulation. The proposed framework of the analysis has been applied to analyse countries' positions but it has not been applied to explain banks' preferences on the proposed elements of the EU banking union. The conducted analysis revealed that the internationalisation level alone cannot fully explain the positions of the banks on the creation of the EU banking union. The analysis of 20 biggest European banks varying from global to local banks revealed that despite being internationalized differently the majority of the banks supported the creation of the common supervisory and resolution mechanisms which would be applied to all euro zone banks. Even banks having a low internationalisation level supported the creation of the proposed EU banking union and vice versa. It can be also noted, that the majority of the banks voiced the support for the supranational governance of the single resolution mechanism but opposed the high degree of risk sharing – the creation of the ex ante resolution fund.
The study aims to explain why European banks had different positions towards establishing the EU banking union. Most of the academic publications dedicated to analyze the very recently implemented EU financial sector reforms give particular attention to explaining why different EU member states opposed the creation of a full banking union as it was proposed by the European Commission while there is a lack of academic discussions raising the question of how to explain that European banks also had different positions towards the implementation of single supervisory and resolution mechanisms. The research poses the question of how to explain different banks' positions towards the creation of the EU banking union. While some international banks were strongly promoting the new supranational supervisory and resolution mechanisms which would be applied to the whole EU banking sector the others voiced strong opposition to the points of governance and application scope of proposed EU banking sector reforms. The overall aim of the study is to give the possible explanation of why different banks had different positions towards shaping the EU banking union. The study is based on the hypothesis that highly internationalized banks preferred greater European regulatory harmonization in the banking supervision and resolution (creating single supervisory and resolution mechanisms which would include all euro zone banks, supranational governance of banking resolution and high degree of risk sharing) while low internationalized banks preferred more the national regulatory autonomy. The research is based on the theoretical framework suggested by A. Spendzharova. The author argues that the level of bank internationalisation is an important determinant of the extent to which governments were prepared to endorse European solutions in banking supervision and resolution or prefer the national regulation. The proposed framework of the analysis has been applied to analyse countries' positions but it has not been applied to explain banks' preferences on the proposed elements of the EU banking union. The conducted analysis revealed that the internationalisation level alone cannot fully explain the positions of the banks on the creation of the EU banking union. The analysis of 20 biggest European banks varying from global to local banks revealed that despite being internationalized differently the majority of the banks supported the creation of the common supervisory and resolution mechanisms which would be applied to all euro zone banks. Even banks having a low internationalisation level supported the creation of the proposed EU banking union and vice versa. It can be also noted, that the majority of the banks voiced the support for the supranational governance of the single resolution mechanism but opposed the high degree of risk sharing – the creation of the ex ante resolution fund.
