TITLE: Lithuanian Bank Concludes Administrative Agreements with Finora Group and Finora Bank Following Targeted Inspection
BODY:
On June 9, 2026, the Lithuanian Bank concluded administrative agreements with AS Finora Group and Finora Bank UAB following a targeted inspection of the entities' internal governance and control systems, as well as their management of credit, liquidity, and interest rate risks in the banking book during 2023 and 2024. For Finora Bank UAB, the inspection additionally covered operational risk management, business function outsourcing, information and communications technology (ICT), and security matters.
The inspection identified violations and deficiencies. Both AS Finora Group and Finora Bank UAB submitted remediation plans and supporting documentation demonstrating that identified violations and deficiencies were either being addressed or had been resolved. The Lithuanian Bank determined that administrative agreements were appropriate. The parties agreed on enforcement measures, including public disclosure, warnings, and financial penalties. Both entities committed to remedying remaining violations and deficiencies by the end of 2026.
AS Finora Group received a public disclosure for failing to ensure consolidated-level interest rate risk management in the banking book and deficiencies in liquidity ratio assessment and calculation systems. Finora Bank UAB received a public disclosure for ineffective operational risk management, non-compliance with liquidity coverage ratio (LCR) calculation frequency requirements, and deficiencies in LCR calculation and interest rate risk management systems. AS Finora Group received a warning for inadequate credit risk internal control systems and internal controls for liquidity risk management. Finora Bank UAB received a warning for identified deficiencies in internal control and ICT areas.
Financial penalties totalling EUR 139,000 were imposed: EUR 70,000 against AS Finora Group for violations related to own funds, large exposure requirements, accounting policy deficiencies, and loan portfolio monitoring systems; EUR 69,000 against Finora Bank UAB for non-compliance with large exposure limits and deficiencies in ICT, security risk management, credit risk appetite sizing, and credit risk management systems.