LB Bank of Lithuania

The Bank of Lithuania, a central bank of the Republic of Lithuania, plays a crucial role in maintaining financial and economic stability within the country.

It is a member of the European System of Central Banks, comprising the European Central Bank and 19 euro area central banks, effectively making it a member of the Eurosystem. It facilitates the shaping and implementation of euro area monetary policies through its close working relationships with the ECB and other central banks.

The Bank is intermediating decisions that affect economic conditions not just in its own country, Lithuania, but throughout the entire euro area.

Purpose with a Wider Impact

The Bank of Lithuania's mission is to create value for society in conjunction with a sound financial system and to support sustainable economic growth. Some of the institution's objectives extend beyond simply setting monetary policy, and it aims to support the well-being of the economy and the sustainability of the financial infrastructure, keeping both reliable, sound, and capable of supporting the long-term capacity for prosperity in Lithuania.

This mission is operationalized with transparency, innovation, and integrity; every action taken by the Bank is mindful of the fact that we are striving to enhance public trust, promote sound economic growth, and stabilize local and euro-area financial systems.

Vision and Values

The Bank has a vision of becoming a Eurosystem central bank that is innovative, proactive, and open, inspiring trust and leading to intended progress. This ambition is based on three core values:

• Value to Society – Regulating and advancing the financial sector while ensuring transparency and public value.

• Responsibility – Being responsible for decisions, driving change from the inside, and focusing on sustainability.

• Developing every day – Engaging in experimentation, failing forward, and asking how we can do better every day.

These values provide direction to the Bank, guiding it in fulfilling its responsibilities to the citizens of Lithuania, financial institutions in Lithuania, and the broader European community.

Monetary Policy and the Eurosystem

Through the Eurosystem, the Bank of Lithuania works with the ECB and other central banks in the euro area to formulate and implement monetary policy.

This is central to the ECB's role in providing price stability across the euro area, its primary objective. For Lithuania, this included supporting monetary policy to achieve growth while maintaining more routine financial stability, thereby providing a predictable and secure environment for consumers, businesses, and investors.

Strategic Directions

The Bank has a vision for the future and operates using the principles of its integrated strategic management methodology.The three strategic directions set out for 2022-2025 are:

1.A Financial Sector that Creates Value for Consumers – Improving transparency and services for individuals and businesses.

2.A Financial Sector that Enables Sustainable Economic Growth – Assisting policies and innovations to help strengthen Lithuania's long-term competitiveness.

3.A People-centric Organization committed to Progress – Embracing digital technologies and processes while attracting, developing, and retaining a highly skilled workforce to play a lead role in contemporary central banking.

Each of the directions will include measurable goals and results based on performance indicators, ensuring transparency in reporting their accountabilities to the public.

Transparency and Accountability to the Public

Societal accountability is a key aspect of the Bank's ethos.The Bank of Lithuania publicly disseminates reports regularly and clarifies its decision-making processes (including monetary policy and financial industry regulatory actions).

Using transparency to keep the public informed enables us to strengthen confidence in Lithuania's economic system, while also allowing citizens to understand the consequences of their daily monetary decisions.