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The term of the current central bank director, Vito Vasiliauskas, ends on April 7.
120 members of the Seimas voted in favor of G.Šimkus’ candidacy, two MPs abstained and one ballot was damaged.
He emphasized banking supervision and competition.
This candidacy was approved by the Budget and Finance Committee of the Seimas. BFK Chairman Mykolas Majauskas said the committee agreed that the new chairman of the board should focus on the stability of the banking system, increasing competition, financial education and the development of green finance.
“We need to make sure that the banking system is stable and reliable. There are countless things involved and last but not least the prevention of money laundering and terrorist financing. We know that the Baltic states are embroiled in scandals. As a result, the prestige of the Baltic countries has suffered and we already have consequences in the banking system for correspondent banking, that is, transfers and settlements in foreign currency, “he said on behalf of the Group of Lithuanian Christian Democrats-Union National.
Photo by Sigismund Gedvila / 15min / Mykolas Majauskas
Speaking of the second task of the candidate for president of the board of the Bank of Lithuania, to increase competition, M. Majauskas noted that a few years ago the members of the Seimas emphasized the same as now. The main problems are bank fees, high interest rates and access to finance for small and medium-sized businesses.
“Nothing has fundamentally changed for 10 years, the problems remain the same. If we look at the historical data on bank profitability in the euro area, here Lithuania stands out. Banks in Lithuania live like fattened kidneys, they make significantly higher profits than in other euro area countries and they can afford to choose what to finance and what not to finance. They can afford to increase prices, even compared to other Baltic countries, “he said, emphasizing that increasing competition is the main task of the presidential candidate. of the Board of LAC.
Speaking on behalf of the Liberal Movement faction, Eugenijus Gentvilas emphasized that G.Šimkus’ experience at the Bank of Lithuania is diverse and he has international experience. Also, “this is a man on the inside.”
“Regarding the candidate’s competencies, emphasis should be placed on investment knowledge, understanding of commercial banking supervision experience and understanding of how to develop preventive systems to avoid errors in commercial banking supervision. The candidate emphasized that it is impossible to wait for the day when poor supervision turns out, a preventive system must be created so that this does not happen ”, he said.
Photo by Luke April / 15 minutes / Eugenijus Gentvilas
Attention was drawn to the regions
Algirdas Butkevičius, a member of the Seimas Mixed Seimas Group, pointed out that retail banking is neglected in some districts of Lithuania. According to him, in the Vilybiškis Kybartai district, the cities of Virbalis and the surrounding settlements, where between 10 and 11 thousand people live. people, there is no branch or branch of a commercial bank.
“This shows that commercial banking has taken the path that if it is not profitable, it is necessary to liquidate the branch, close and the opening of new ones is not discussed,” he is convinced.
Photo by Sigismund Gedvila / 15min / Algirdas Butkevičius
Vytautas Bakas, who belongs to a mixed group of Seimas members, also highlighted the increase in the availability of banking services. He asked the candidate “to be more sensitive to consolidation.”
“There are many examples in the world of how cooperative banking is promoted, its internal potential. I also invited to cooperate with the subjects, with the small entrepreneurs, the Seimas. And strengthen the potential of national retail banking as a whole, based on international examples, ”he said.
Photo by Sigismund Gedvila / 15min / Vytautas Bakas
G.Šimkus promised that the central bank will take a more active role in responding to public and business dissatisfaction with the availability and prices of some banking services.
The candidate questions the idea of creating a state-owned commercial bank and says that credit unions have more potential in Lithuania. He promises to take the initiative to create the conditions for cooperative banking to become “national league players” faster.
He acknowledges that public debt has reached an unusual level, but believes that it should not be feared, but that efforts should be made to use the borrowed funds as efficiently as possible.
G.Šimkus has been working at the country’s central bank since 2002 and has steadily moved up the career ladder. He has been a member of the council since last September.
The mandate of the current head of the LAC Vito Vasiliauskas ends on April 7.
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