The Bank of Lithuania is a competent and objective institution, conducting effective supervision of the financial market. This view is shared by the absolute majority of the country’s financial market participants who have expressed their opinion in the survey on the Supervision Service of the Bank of Lithuania.
“In supervising the financial market and aiming at its maximum efficiency, the Bank of Lithuania has been maintaining constructive partnership with market participants. We are convinced that is the most efficient way for cooperation in order to ensure credibility of the financial sector and protection of consumer interests”, said Vytautas Valvonis, Director of the Supervision Service at the Bank of Lithuania.
Having surveyed 285 representatives of the supervised financial market participants, it turned out that nearly 85% of them consider the Bank of Lithuania’s supervision as rather or very effective. 65% of the surveyed are satisfied with the work of the Supervision Service. The survey has revealed that two areas – prudential and financial service and market supervision – have been positively assessed by the majority (74%) of the surveyed. Inspection and research activities have received positive evaluation from 66%, licensing – 64%, legislative and regulatory activities – 61%, dispute and complaint handling – from 56% of respondents.
The vast majority of the surveyed believe that the Supervision Service has a good or very good knowledge of the financial market, the specificity and risks of the supervised financial market participants. They have also positively assessed procedures applied by the Supervision Service specifically to their companies.
The financial market participants have put forward the development of informal communication, asking for quick and easy answers provided as a one-stop-shop solution. In fact, survey results have shown that in more than 70% cases informal consultations are already corresponding to the subsequent formal replies.
Mr Valvonis has emphasised that this bi-annual survey is an important tool in improving various processes of the Supervision Service – the Bank of Lithuania has been thoroughly examining and implementing suggestions received during the survey, aiming at changes that would benefit the financial market and our society. For example, the share of those who think that the legislation regulating the Lithuanian financial market sets out no excessive requirements has doubled since the previous survey – from 10% to 20%.
With a view to ensuring constructive dialogue with financial market participants, the Bank of Lithuania publishes preliminary inspection plans, specifies the legislation to be amended or adopted, prepares guidelines, publishes open consultations on relevant issues and actively advises market participants. Last year, the Bank of Lithuania implemented a smart e-licensing tool that allows potential financial market participants to remotely apply for a licence in a faster, easier and less expensive manner. FinTech companies developing innovative financial products can test them in the Bank of Lithuania’s regulatory sandbox.
In its strategic operational directions for 2017-2020, the Bank of Lithuania plans to become a financial sector partner encouraging innovations and sustainable financial market growth, as well as to create an advanced and attractive regulatory and supervisory environment within the financial sector.