A change excavator is running at the Bank of Lithuania: According to sources, the largest structural subdivisions are dissolving

Various Delfi sources have confirmed that the Bank of Lithuania will no longer have services, the largest structural subdivisions on which the work organization of departments and divisions depends. Consequently, a five-member Board would assume greater responsibilities. The positions of Heads of Service would also be maintained.

“Changes are always good and should be, but in this case it is very strange, without discussion and analysis, that is disappointing,” said a person familiar with the situation.

Another person confirmed that a presentation on structural changes was scheduled for Bank of Lithuania employees on Thursday evening.

According to the sources, “it is not clear who will be responsible for the whole, no analysis has been done.” It is questionable whether the performance of functions such as banking supervision will not suffer when the members of the Board of Directors assume the work of the Heads of Service.

It is explained that the services acted as a link between several unrelated departments – in the absence of a clear responsible person, responsibility is “dispersed”. Fears have also been voiced that the change in direction is burying previous fintech development ambitions.

According to sources, there will be more changes: the communication function would not respond directly to the Board, but would be transferred to the Department of General Affairs, the changes may affect the functions related to cash.

Delfi still does not have official confirmations on the changes, we have requested the comment directly from the Bank of Lithuania; We will add the comment after receiving it.

The Seimas committee will want to know more

Mykolas Majauskas, chairman of the Seimas Budget and Finance Committee (BFK), assesses that the major changes raise questions: Next Wednesday’s BFK meeting is expected to learn more about the transformation during parliamentary scrutiny.

“The Bank of Lithuania is an independent institution that is free to decide on its organizational structure. The new bank manager has extensive experience working in a central bank and I am sure he knows what he is doing. From the BCF’s point of view, it is important that the planned changes comply with the principles and objectives set out in the Bank of Lithuania Law. There are several questions here, ”commented M. Majauskas.

The first issue is the supervision and control of banks.

“Won’t the dissolution of the Financial Market Supervisory Authority of the Bank of Lithuania weaken the control of commercial banks? A good decade ago, maintenance errors were very costly for Lithuanian taxpayers, ”says M. Majauskas.

The BFK will also want to know whether the flattening of the organizational structure of the Bank of Lithuania and the involvement of the Board members in the day-to-day management of the Bank are in line with the strategic role of the Board of Directors. the Bank of Lithuania.

“Naturally, the third question arises as to whether there will be no gap in strategic problem solving when board members deal with financial matters. For this reason, euro area countries usually have an independent supervisory board, which closely supervises the activities of the central bank, approves its budget and decides on strategic issues, ”says M. Majauskas.

Touched by four senior executives

According to the current structure of the Bank of Lithuania, the Bank is managed by a Board of Directors, which determines the organizational structure, approves the mission, vision, strategic directions and resolves other important matters. The chairman of the board (currently Gediminas Šimkus) organizes the work of the Bank of Lithuania.

At present, 3 services have been formed to carry out the main functions of the central bank – Banking, Stability and Economic and Financial Supervision, as well as the Service of the Organization that attends to other services. Services consist of departments, departments, from divisions.

In the absence of these services, four heads of service will have to resign or take other positions.

One of the largest structural divisions is the Financial Market Supervisory Authority, its director is Jekaterina Govina. This service consists of three departments: Banking and Insurance Supervision, Market Supervision and Financial Services, Law and Licensing. There are also two departments: Prevention of Money Laundering, as well as the Digitization and Advanced Analytics Division.

The director of the Banking Service is Jonas Kanapeckas. Following this service structure is the Operations and Payments Department, the Investment Management Department and an independent Risk Management and Reporting Division.

The Director of the Economic and Financial Stability Service is Aurelijus Dabušinskas, followed by the Departments of Economic and Financial Stability and Statistics.

The organization’s service director is Tom Kvaraciejus. The Office has three departments: Accounting, Information Technology, and Service Administration. There is also an Operations Management Division under this service.

At present, some divisions and departments report directly to the Board of the Bank of Lithuania.

The restructuring begins after the change in management of the Bank of Lithuania. In April this year, Gediminas Šimkus was appointed the new director of the central bank, replacing Vita Vasiliauskas. In July, Simonas Krėpšta, a former adviser to President Gitanas Nausėda, was appointed a new member of the Board. Other members of the Bank’s Board of Directors: Asta Kuniyoshi, Raimondas Kuodis, Marius Jurgilas.

The Bank of Lithuania currently has 648 employees and the average salary in July was 2,800 euros before taxes. The income of women amounted to 2,639 euros and those of men, 2,993 euros, the difference, 354 euros.