In order to operate as a bank, a company to be established in Lithuania (or already established in Lithuania) shall obtain a license from the Bank of Lithuania.
A bank or credit institution may be founded by any person which meets the requirements except:
- legal persons funded by the state or municipal budget;
- persons who did not provide any evidence to verify their identity, activities, financial position, heads of legal entities, persons for whose benefit shares are acquired, the acquisition and legitimacy of funds spent on bank shares;
- persons who do not agree that the supervisory authority handled data about the founders, including personal data and information about a person's health.
The minimum initial capital of a bank shall be equal to 5 million EUR.
The initial capital can consist of one or several of following items, which correspond to the requirements of EU Regulation No 575/2013 regarding Common Equity Tier 1 items:
- shares, as well as other capital instruments and respective premiums;
- retained earnings or losses;
- other accrued income indicated in the statement of comprehensive income;
- other reserves;
- profit of the current business year.
Head of the bank
Head of a Bank must be of good repute and have the qualifications and experience allowing him to properly exercise his functions.
At least one head of the administration of a bank must speak the Lithuanian language and permanently reside in the Republic of Lithuania.
Only persons approved by the Bank of Lithuania can hold the positions of the head of the bank or administration member of the bank.
Members of bank administration are considered the following persons:
- members of the bank’s supervisory board;
- members of the bank’s board;
- heads of the administration;
- the head of the internal audit service;
- heads of the branches and representative offices of the bank as well as other employees of the bank and other persons who, under the bank’s articles of association, resolutions of the board, the rules of procedure of the administration or by a decision of the heads of the administration, have been authorized to independently take decisions on the provision of financial services and to conclude, on behalf of the bank, the transactions meeting the criteria set by legal acts of the supervisory institution and having risk characteristics.
The all of the members of administration shall meet the above requirements.
Information and documents to be submitted by bank founders in order to obtain an authorization to establish a bank:
- the application;
- memorandum of association of the bank;
- articles of association of the bank;
- minutes of the statutory meeting and list of participants of the meeting;
- an outline of activities of the bank;
- documents and data on the identities of the founders of the bank and the proportion of the bank’s authorized capital and (or) voting rights being acquired by each one of them as well as the documents and data evidencing that the funds used for the acquisition of the proportion of the bank’s authorized capital and (or) voting rights have been obtained legitimately;
- the documents required to asses the eligibility of the founders of the bank acquiring a qualifying holding in the bank’s authorized capital and (or) voting rights;
- the documents proving that shares of the bank have been fully paid-up;
- a list of heads of the bank elected by the statutory meeting whose election or appointment is subject to an authorization of the supervisory authority;
- an authorization of a foreign supervisory authority to establish a controlled bank in the Republic of Lithuania or the information that this institution does not oppose the establishment of the bank (the information shall be provided in the case of establishment of a controlled bank by a foreign bank).
State fee for issuing bank licence is 50 683 EUR.