"Two-thirds of clients of some companies are late. This raises suspicions that such companies could be lending money to clients unable to repay it in order to profit from fines and late payment interests," Vytautas Valvonis told Lithuanian Radio.
Around 30 percent of loans by some credit unions are being provided to unemployed people, which raises issues about customer risk assessment practices, he says.
The official said that based on the results of the survey, the central bank might propose legislation aimed at tightening customer risk assessment requirements for credit unions.
The Bank of Lithuania is currently stepping up supervision of credit unions and is considering obliging large credit unions to convert into banks.
