2012-03-12 15:21

Russia's Investtorgbank still waits for regulatory approval to open office in Lithuania

Russia's Investitsionnyj Torgovyj Bank (Investment Trade Bank, or Investtorgbank) is still waiting for the go-ahead from the Lithuanian central bank to open an office in Vilnius.
Internetinė bankininkystė
Internetinė bankininkystė

"Before granting permission to the Russian commercial bank Investitsionnyj Torgovyj Bank to establish an office, the Bank of Lithuania asked for substantial additional information in order to make its decision," the Eversus.lt online news portal quoted Giedrius Simonavičius, the central bank's head of public relations, as saying.

The central bank sent its latest request for additional information on Feb. 17. There is no deadline for Investtorgbank to provide that information.

"We received a letter saying that we have to submit some additional information. Therefore, the bank's heads in Moscow are now preparing the answer," Elmaras Milinavičius, who has been cleared by the central bank to head the representative office, was quoted by Eversus.lt as saying.

According to the article, it is fierce competition in the Russian banking sector that is driving Investtorgbank to expand into new markets. In Lithuania, for example, the Russian bank finds it encouraging that Scandinavian-owned banks, which dominate the market, lend less money than companies and private individuals repay them in loans, which leaves room for other lenders. The Scandinavian banks regard Investtorgbank's current plans in Lithuania as "first steps that are not worth worrying about."

Investtorgbank's board of directors last July decided to open a representative office in Vilnius and to consider opening a representative office in the German city of Bonn.

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