The Risks in the Lithuanian Banking Sector in the Context of the Overheating of the Economy

12 Pages Posted: 26 May 2016

See all articles by Dalia Kaupelyte

Dalia Kaupelyte

Vytautas Magnus University

Kristina Levisauskaite

Vytautas Magnus University

Date Written: April 30, 2009

Abstract

In 2007, more and more signals on the overheating of Lithuanian economy appeared. High inflation rates, stagnation in the housing market resulting in the increasing number of default loans force Lithuanian banks to review their risk management policies. In this article the analyses of the changes in Lithuanian economy is presented, reflecting on the signals of the overheating and the changes of the main indicators in Lithuanian banking sector as well. The behavior of the banking sector and the risks related with their activities during this specific period in the economy is investigated and liquidity, credit and capital adequacy risks as the most important risks in the Lithuanian banking sector are analyzed. A short review of policy taken by national authorities in order to keep financial stability and help banks run the risks their face is presented.

Keywords: Banking system, overheating of the economy, risk management

JEL Classification: G21, O52, P43

Suggested Citation

Kaupelyte, Dalia and Levisauskaite, Kristina, The Risks in the Lithuanian Banking Sector in the Context of the Overheating of the Economy (April 30, 2009). Available at SSRN: https://ssrn.com/abstract=2784607 or http://dx.doi.org/10.2139/ssrn.2784607

Dalia Kaupelyte (Contact Author)

Vytautas Magnus University ( email )

S. Daukanto 28
Kaunas, LT- 44254
Lithuania

HOME PAGE: http://www.vdu.lt

Kristina Levisauskaite

Vytautas Magnus University ( email )

S. Daukanto 28
LT-3000, Kaunas, LT- 44254
Lithuania
+ 370 37 327 854 (Phone)
+ 370 37 327 857 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
20
Abstract Views
398
PlumX Metrics