Notification of a material eventMedicinos Bankas UAB (“Bank”), registration number 112027077, registered seat address: Pamėnkalnio 40, LT-01114 Vilnius, Lithuania.
The bank would like to inform you that the Bank of Lithuania (BoL) has decided to return the countercyclical capital buffer (CCyB) rate to the pre-pandemic level of 1%. The CCyB will apply to banks licensed in Lithuania, groups of central credit unions (on a consolidated basis) and branches of foreign banks. The CCyB is needed in the context of rapid growth in the household and corporate borrowing cycle, as well as increased risks to economic growth linked to inflation and the war in Ukraine instigated by Russia. Unlocking this facility would help banks withstand credit losses and sustain lending in the event of a significant economic or financial shock. The increased CCyB rate will apply after a transitional period of 12 months, i.e., with effect from 1 October 2023. Also, the 2% sectoral systemic risk buffer (SyRB) for credit institutions’ portfolios of mortgage loans to individuals, which came into effect on 1 July 2022, will continue to apply. This requirement does not apply to Medicinos Bankas temporarily, until its mortgage loan portfolio reaches the minimum portfolio size of EUR 50 million set by the BoL. More information: Mr. Igor Kovalčuk, Member of the Board, Director of Legal and Compliance Service, Deputy Head of Administration Phone: + 370 686 34122, email: igor.kovalcuk@medbank.lt
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