The state bank deal is maturing, but it should have nothing to do with normal banking. Deal

The discussion in the Presidency took place about a week after Seimas approved the idea of ​​creating a state development bank.

The adviser to President Simonas Krėpšta said that the event was attended by representatives of all political parties.

“We have not heard any categorical objection to this idea. This discussion was really valuable and we hope to have a result,” S. Krėpšta told reporters.

According to him, there are many states where national development banks operate productively when they focus on niches that are not covered by commercial banks.

Meanwhile, loans to small and medium-sized enterprises and infrastructure projects are restricted in Lithuania, the adviser emphasized.

He also pointed out that during the discussion it was agreed that said state bank should not participate in retail banking.

“It is also a very important condition that such a bank creates value, that it is managed in a very responsible and professional manner,” said S. Krėpšta. “Professional, independent advice, risk standards, very transparent supervision are the conditions that have worked in other countries.”

To run the bank efficiently, the salaries of its managers should not be compared to the salaries of the President of Seimas, the Prime Minister, or even the President.

Seimas, which approved the idea of ​​a state bank last week, instructed the government to start consultations with the European Commission on technical assistance to establish the bank by September and consider the possibility of the state participating in the capital of credit institutions.

Consider merging three institutions

It is proposed to create the State Bank on the basis of state investment and business guarantees (Invega), the Public Investment Development Agency or the Agricultural Loan Guarantee Fund that currently operates in the market, since these, according to managers They cannot act as a fully effective alternative to commercial companies operating in Lithuania. banks.

Finance Minister V.Šapoka said participants in the discussion finally managed to “unify the dictionary” of what the state bank would do.

“The really growing consensus is that the three institutions that currently operate, which are national development agencies, must be consolidated into a solid structure,” said the minister.

“If we call this bank structure it is a matter of taste, because that institution has nothing to do with traditional banking,” he added.

Valius Ąžuolas, chairman of the Seimas Budget and Finance Committee and representative of the ruling “peasants”, also said that the state bank should not participate in retail banking.

However, he emphasized that the state could raise capital in credit institutions to improve the availability of financial services in the regions.

“You don’t really need the state to re-create a branch, network or participate in activities that are really complicated.” It would be enough to raise capital from credit institutions and thus support that retail market, “said the politician.

Good salaries for good managers

Rolandas Valiūnas, Chairman of the Board of the Investors Forum, said that he would not have previously endorsed the idea of ​​a state-owned bank loan to small and medium-sized companies, but that in five years his opinion has changed, observing changes in the banking market commercial in Lithuania.

“Five years ago I would not have said what I would say today, but five years ago there were still Danske Bankas, DNB and Nordea in Lithuania.” Obviously, borrowing opportunities were completely different, “said R. Valūnas, also a manager at one of the country’s largest law firms.

“Today, in my opinion, … the state bank has its place and would be accepted in the market,” he added.

According to the employers’ representative, an independent supervisory board and an independent supervisory board could suppress unwanted political influence on the activities of the bank, and the successful operation of the institution requires the hiring of good managers.

“To ensure efficient management of the bank, the salaries of its managers should not be compared to the salaries of the President of the Seimas, the Prime Minister or even the President. Only in this way could competent and responsible people be hired who could achieve the result” R. Valūnas said.

Banking expert Antanas Valys stated that a successful state bank needs a clear strategy that does not change in the event of a change of government, independent management, it must operate “in an extremely efficient, simple and consumer-oriented manner.”

According to him, said bank should also make a profit so as not to overburden taxpayers.

“For example, the German state development bank reinvests all profits, but has a profit target,” said the expert.

The establishment of a state bank is being considered arguing that today the availability of credit for small and medium-sized enterprises in Lithuania is one of the lowest in the EU.