Successful implementation of the EU-funded project Strengthening the Institutional Capacity of the National Bank in the Process of its Accession to the European System of Central Banks. Presentation of experts from the Bank of Lithuania
Skopje, 17 October 2020
Successful implementation of the EU-funded project Strengthening the Institutional Capacity of the National Bank in the Process of its Accession to the European System of Central Banks. Presentation of experts from the Bank of Lithuania
Payment systems promotion, creation of room for improving and developing payment services market and support for launching new innovative technologies in the financial sector are part of the National Bank priorities which are the focus of most of the activities within the EU-funded Twinning Project Strengthening the Institutional Capacity of the National Bank in the Process of its Accession to the European System of Central Banks.
Within this project, the National Bank cooperates also with the Bank of Lithuania. Together, these two institutions have analyzed our experience in this area, the current cooperation with fintech companies and the existing regulatory framework, as well as the expected changes to payments in the context of the forthcoming implementation of the open banking concept.
A virtual event was organized on 15 October 2020 at which Lithuanian experts presented the experience of the Bank of Lithuania as a supporter of the fintech sector. Special emphasis was placed on the Lithuanian communication platform between the innovative business community, the central bank and other relevant institutions, just like the Innovation Hub, which the National Bank opened late last year. Experience shows that such platforms are very important for setting an appropriate regulatory framework to support innovative solutions, while taking into account potential risks.
Having in mind the changes envisaged in the new Law on Payment Services and Payment Systems drafted by the National Bank in cooperation with the Ministry of Finance, the presentation placed special emphasis on the Lithuanian payment landscape and the activities of payment institutions, e-money institutions and new fintech companies. In this context, opportunities were discussed, as well as challenges that countries face in introducing such an approach in the payment services and systems. The adoption and implementation of the new regulation in our country will mean transposition of the latest European legislation in this area and creating conditions for significant changes aimed at digital transformation and greater competition.
The presentation also addressed experiences in consumer protection, which was of special importance for our experts, having in mind that the National Bank is intensifying its activities in this area. For this purpose, a special working group has recently been established, which should draft a framework of consumer protection-related activities, while taking into account the experiences shown in this presentation.
The presentation was also useful in the context of the preparation of the Strategy for application of financial technologies, which is part of the National Bank Program.
Considering the need for coordinated activities in the support of the domestic fintech sector, besides the National Bank experts, representatives of commercial banks, savings houses, the Macedonian Banking Association, as well as representatives of several institutions, professors and students from economics and law schools in the country were invited to participate in the event.
This Twinning project focuses not only on payment services and systems but also on financial accounts statistics, banks regulation and supervision and research activities for policy analysis.
Main Twinning partners of the National Bank in implementing the project activities are the central banks of Germany and Croatia, and some of the activities, besides experts from the Bank of Lithuania, involve experts from the central banks of Belgium, Portugal, Romania, the Netherlands, Slovakia and Greece.
