Lithuanian banks face two challenges after joining eurozone

Lithuanian banks will have to face at least two challenges this year after joining the eurozone, said the Association of Lithuanian Banks on Tuesday.

In a press conference, Stasys Kropas, president of the Association, emphasized that the intense work for Lithuanian banks continues even after the euro adoption with new challenges.

"It's the year of preparations to join Single European Payment Area (SEPA)," said Kropas to Lithuanian media.

"This means we have to prepare new credit and debit payments and implement new standards as of 2016," he added.

According to Kropas, the entrance to the eurozone banking system means increased competition as well, including competitions with shadow banking companies.

"Taking into account the increased competition, it's essential to Lithuanian banks to satisfy the clients' need and remain competitive," he said.

However, Kropas pointed out that Lithuanian domestic banks now have the access to cheap borrowing provided by the European Central Bank which helps when competing with Scandinavian banks having strong presence in Lithuania's market.

Kropas also summarized that the currency changeover period was rather tense for banks in Lithuania but was completed successfully.

The Association of Lithuanian Banks represents nine banks established or having operations in Lithuania. Endit