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Bank of Lithuania
The Bank of Lithuania (Lithuanian: Lietuvos bankas) is the name of two homonymous institutions, respectively in existence from 1922 to 1943 in Kaunas, and since 1990 in Vilnius. The current Bank of Lithuania is the national central bank for Lithuania within the Eurosystem. It is fully owned by the Lithuanian state.
The interwar Bank of Lithuania issued the Lithuanian litas between 1922 and 1940. The current Bank of Lithuania also issued a national currency of the same name from 1993 until end-2014, when Lithuania adopted the euro as its currency.
Whereas it is governed under a national framework of accountability, the Bank of Lithuania increasingly implements policies set at the European Union level. In addition to its Eurosystem role, it is the national competent authority for Lithuania within European Banking Supervision. It is a voting member of the respective Boards of Supervisors of the European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA), and European Securities and Markets Authority (ESMA). It is Lithuania's designated National Resolution Authority and plenary session member of the Single Resolution Board (SRB). It provides the permanent single common representative for Lithuania in the Supervisory composition of the General Board of the Anti-Money Laundering Authority (AMLA). It is also a member of the European Systemic Risk Board (ESRB).
Following the Act of Independence of Lithuania in February 1918, the authorities did not immediately introduce a new currency as several of the neighbouring countries did, but kept using the German ostmark issued by the German-controlled Darlehnskasse Ost. The ostmark was printed in multiple languages, including in Lithuanian as the auksinas (lit. 'the golden'). The Bank of Lithuania was only established in 1922 in Kaunas, the temporary capital of Lithuania. It held its first board meeting on 27 September 1922, and started operations on 2 October. Its first governor was Vladas Jurgutis. About four-fifths of its equity capital was state-owned, with the remainder owned by municipalities, companies and individuals.
The first task of the bank was to replace the German ostmarks and ostrubels in circulation in the country with the new Lithuanian litas. The bank's mandate extended beyond a pure monetary authority, as it also entailed a developmental role with the possibility of allocating short-term credit to industry and agriculture.
On 31 March 1931, the bank became a member of the Bank for International Settlements (BIS).
Following the Soviet occupation of the Baltic states including Lithuania, the Bank of Lithuania was nationalized by decision of the occupation authorities of 1 August 1940, and merged into the State Bank of the USSR on 3 October. Under German occupation, the Provisional Government of Lithuania petitioned the occupation forces to restore the Bank of Lithuania as a bank of issue, but that demand was rejected and the bank's status was reduced to that of a mere commercial bank. Its operations were terminated by the occupation authorities on 3 March 1943.
At the time of the Soviet invasion, the Bank of Lithuania held gold reserves at the Bank of England (2.9 tons), Bank of France (2.2 tons), Sveriges Riksbank, Swiss National Bank, as well as the BIS (632 kg) and several American banks. As in Latvia and Estonia, the Soviet authorities directed these institutions to transfer the gold to the State Bank of the USSR. The Swedish and Swiss central banks obliged, but other institutions were more cautious given the ambiguous status of state continuity of the Baltic states. The United States declined to recognize the Soviet annexation and thus kept the gold immobilized, a position informed by the Briand–Kellogg Pact of 1928, the Stimson Doctrine of 1932 and explicitly stated in Executive Order 8484 of 10 July 1940 followed by the Welles Declaration of 23 July 1940. Also in July 1940, the Bank of England sequestrated the Baltic gold reserves deposited in its custody. The BIS, advised by legal scholar Dietrich Schindler Sr, assessed that the Soviet invasion had deprived the Baltic states of their capacity to form 'a national independent will' and that therefore the requests of their central banks should be rejected as made under duress. Partly influenced by the BIS position, the Bank of France similarly declined to act on the Soviet requests, and, despite France's own situation under German occupation, maintained that position when similar requests were made by the Bank of Lithuania under German occupation after June 1941.
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Bank of Lithuania
The Bank of Lithuania (Lithuanian: Lietuvos bankas) is the name of two homonymous institutions, respectively in existence from 1922 to 1943 in Kaunas, and since 1990 in Vilnius. The current Bank of Lithuania is the national central bank for Lithuania within the Eurosystem. It is fully owned by the Lithuanian state.
The interwar Bank of Lithuania issued the Lithuanian litas between 1922 and 1940. The current Bank of Lithuania also issued a national currency of the same name from 1993 until end-2014, when Lithuania adopted the euro as its currency.
Whereas it is governed under a national framework of accountability, the Bank of Lithuania increasingly implements policies set at the European Union level. In addition to its Eurosystem role, it is the national competent authority for Lithuania within European Banking Supervision. It is a voting member of the respective Boards of Supervisors of the European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA), and European Securities and Markets Authority (ESMA). It is Lithuania's designated National Resolution Authority and plenary session member of the Single Resolution Board (SRB). It provides the permanent single common representative for Lithuania in the Supervisory composition of the General Board of the Anti-Money Laundering Authority (AMLA). It is also a member of the European Systemic Risk Board (ESRB).
Following the Act of Independence of Lithuania in February 1918, the authorities did not immediately introduce a new currency as several of the neighbouring countries did, but kept using the German ostmark issued by the German-controlled Darlehnskasse Ost. The ostmark was printed in multiple languages, including in Lithuanian as the auksinas (lit. 'the golden'). The Bank of Lithuania was only established in 1922 in Kaunas, the temporary capital of Lithuania. It held its first board meeting on 27 September 1922, and started operations on 2 October. Its first governor was Vladas Jurgutis. About four-fifths of its equity capital was state-owned, with the remainder owned by municipalities, companies and individuals.
The first task of the bank was to replace the German ostmarks and ostrubels in circulation in the country with the new Lithuanian litas. The bank's mandate extended beyond a pure monetary authority, as it also entailed a developmental role with the possibility of allocating short-term credit to industry and agriculture.
On 31 March 1931, the bank became a member of the Bank for International Settlements (BIS).
Following the Soviet occupation of the Baltic states including Lithuania, the Bank of Lithuania was nationalized by decision of the occupation authorities of 1 August 1940, and merged into the State Bank of the USSR on 3 October. Under German occupation, the Provisional Government of Lithuania petitioned the occupation forces to restore the Bank of Lithuania as a bank of issue, but that demand was rejected and the bank's status was reduced to that of a mere commercial bank. Its operations were terminated by the occupation authorities on 3 March 1943.
At the time of the Soviet invasion, the Bank of Lithuania held gold reserves at the Bank of England (2.9 tons), Bank of France (2.2 tons), Sveriges Riksbank, Swiss National Bank, as well as the BIS (632 kg) and several American banks. As in Latvia and Estonia, the Soviet authorities directed these institutions to transfer the gold to the State Bank of the USSR. The Swedish and Swiss central banks obliged, but other institutions were more cautious given the ambiguous status of state continuity of the Baltic states. The United States declined to recognize the Soviet annexation and thus kept the gold immobilized, a position informed by the Briand–Kellogg Pact of 1928, the Stimson Doctrine of 1932 and explicitly stated in Executive Order 8484 of 10 July 1940 followed by the Welles Declaration of 23 July 1940. Also in July 1940, the Bank of England sequestrated the Baltic gold reserves deposited in its custody. The BIS, advised by legal scholar Dietrich Schindler Sr, assessed that the Soviet invasion had deprived the Baltic states of their capacity to form 'a national independent will' and that therefore the requests of their central banks should be rejected as made under duress. Partly influenced by the BIS position, the Bank of France similarly declined to act on the Soviet requests, and, despite France's own situation under German occupation, maintained that position when similar requests were made by the Bank of Lithuania under German occupation after June 1941.