The key risks to Lithuania‘s financial system come from geopolitical tensions in Eastern Europe and a prolonged low interest rate period, according to a survey by the Bank of Lithuania.
© AFP/Scanpix

Simonas Krėpšta, the Director of Financial Stability Department of the Bank of Lithuania, said that “the conflict between Russia and Ukraine has been perceived as the biggest threat to our country’s financial system for more than a year. However, with the tensions in the East subsiding, the financial institutions have identified other incidents that can affect the financial system negatively, for example, the exacerbation of the refugee crisis in Europe and a slowdown of China’s economic growth.”

The exacerbation of the refugee crisis in Europe was identified as the event most likely to negatively affect the country’s financial system in the coming year, but the effect would probably be indirect.

Risks connected to loans and the real estate bubble were identified as least dangerous to the financial system.

The survey is carried out twice a year. Banks and credit companies, management companies and other financial institutions evaluate the most important risks to the Lithuanian finance system, the probability of adverse events and their negative effects in the nearest six months.

Ryanair announces new route from Kaunas (1)

Ryanair announced a new Kaunas route to Zadar in Croatia , with a twice weekly service commencing...

Doctors from Kaunas Clinics hope for gamma knife economic return over the next couple of years

Neurosurgeons from Kaunas Clinics in Lithuania's second largest city of Kaunas are very happy with...

World’s first digital collector coin to feature signatories of the Act of Independence

The world‘s first blockchain -based digital collector coin created by the Bank of Lithuania is...

Norwegian specialised bank gets licence in Lithuania

Following the assessment and proposal of the Bank of Lithuania , AB Fjord Bank has been granted a...

MG Baltic wins reputation damage case against MP

Vilnius Regional Court on Tuesday ruled that a court of lower instance justly ruled early this year...