“The rearrangement is grounded on the aim of becoming a more modern and well-functioning institution and, above all, to further empower the management, i.e. to localise decision-making and responsibility for the outcome where activities are initiated and implemented by reducing hierarchy,” says Gediminas Šimkus, Chairman of the Board of the Bank of Lithuania.
As of 1 November, the Bank of Lithuania will have a flatter hierarchy, as the Services will be eliminated and their responsibilities will be delegated to the 12 departments.
Reducing hierarchy will create more room for leadership, speed up the decision-making process and internal communication within structural units. The rearrangement will enhance the homogeneity of the organisational structure, in terms of hierarchy and responsibility, and the benefits for the management of the organisation will be evident – pooling the resources for managing activities as well as administrative resources, reinforcing the operational performance management and implementation of the strategy, and improving conditions for the management to focus on finding solutions.
Another important change is that, following a decision of the Board of the Bank of Lithuania, part of the issues related to financial market supervision will be dealt with by the Financial Market Supervision Committee, which will consist of the heads of the three supervisory departments.
Comprehensive decisions with less impact on the market will be delegated to the Committee, which will ensure more efficient and expeditious decision-making, while the Board of the Bank of Lithuania will remain responsible for supervisory decisions with strategic impact.
The Committee will be able to issue or withdraw part of the operating licences or authorisations, issue recommendations, guidelines and positions, and consider arrangements to pay fines at the request of a financial market participant.
The Committee will consist of three members: Director of the Banking and Insurance Supervision Department, Director of the Financial Services and Markets Supervision Department and Director of the Legal and Licensing Department. These positions are now held respectively by Renata Bagdonienė, Rūta Merkevičiūtė and Arūnas Raišutis.
Until recently, there has been an advisory committee in the Financial Market Supervision Service which advised its Director.
The functions and roles of members of the Board of the Bank of Lithuania in the organisation will not change due to the rearrangement, and the Board of the Bank of Lithuania will act in accordance with the powers conferred to them by the Seimas and will take all major decisions regarding the activities of the central bank.
