Student ID:MA3N0202
Name: Li-Wen Chang(Jenny)
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What’s the “Financial supervision mechanism”
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The Financial Supervisory Commission (FSC)
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Case ─ The Bank of Lithuania
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Conclusion
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Reference material
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Financial regulation refers to the financial
authorities in accordance with the legal powers
conferred by law on financial institutions and
supervise the operations and management in
order to maintain normal financial order, the
protection of depositors and investors in the
interests of the financial system to protect the
safety, health, and efficient
run.
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1. The market access regulation
Market access regulation is the central bank
for qualified institutions to enter the financial
markets , management of financial products ,
providing financial services to review and
approval process.
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2. Operations supervision
The risk of financial institutions, is gradually
formed and accumulated in the course of daily
business operations.
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Business compliance. The purpose of this
regulation is to urge financial institutions to
strictly comply with banking laws and regulations
as well as the financial rules and regulations
established by the Central Bank to maintain
appropriate competition among financial
institutions, to maintain a healthy financial order.
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3.Market exit regulation
 Financial institutions out of the market in
the form of the main dissolved, withdrawn
(closed) and bankruptcy three forms.
 Rescue or take the more shock small exit
form
 The strength of financial institutions
mergers and acquisitions.
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FSC was established on 1 July 2004
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Supervision, regulation, and examination

Create a sound, fair, efficient, and
internationalized environment for financial
industry

Strengthen safeguards for consumers and
investors
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Maintaining financial
Implement financial
stability
reform
Establish a fair, healthy and profitable financial environment,
to enhance the competitiveness of the financial sector
Assist industry
development
Strengthen consumer and
investor protection and
financial education
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Chairman
Vice chairman
Vice chairman
Chief Secretary
Committee meetings
Financial Supervisory Commission
Bank Board
Securities and
Futures Bureau
Insurance
Bureau
Inspection
Bureau
Integrated Planning Office
International Business
Department
Legal Office
Information Services
Office of the Secretary
Personnel Office
Comptroller room
Political plenum
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http://www.lb.lt/financial_stability
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

The role of the Bank of Lithuania is very
important for the country’s economy and
financial system.
Its principal objective is to maintain price
stability.
https://www.lb.lt/about
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Commercial banks, other credit , payment
institutions, securities and insurance markets

Investigates disputes between consumers
and financial institutions
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Supervision of Credit Institutions
The goal of the supervision of credit institutions is to
monitor compliance of credit institutions with the
standards of safe
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
Analysis of the financial situation of credit institutions

Analyses the performance and trends of the banking
system
The Bank of Lithuania also periodically performs inspections
and examinations of credit institutions.
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Supervision of Payment Institutions
A payment institution is an economic entity
providing payment services
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
Off-site inspections of payment services
provided by payment institutions

Additional services closely related thereto
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The goal of the supervision of electronic
money institutions---Monitor whether electronic money institutions
and foreign electronic money institution branches
operating in Lithuania, having a license issued by
the Bank of Lithuania, are in compliance with the
requirements provided in the laws and the Bank
of Lithuania’s statutory requirements.
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The purpose of supervision of insurers
and insurance intermediaries--Ensure
reliability, efficiency, safety
and stability of the insurance system
Protection
of the interests of the
policyholders
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 Insurers
and insurance intermediaries with the
requirements of the legal acts regulating their
activities and with the licensing conditions
 Examines
complaints concerning the activity
of insurance market participants

Provides methodological assistance to insurance
market participants.
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
Unified financial supervision system

Establishment of a financial holding company
Government Financial Management
Financial business organizations

Principle of functional management

A fair and reasonable financial environment
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http://www.fsc.gov.tw/ch/home.jsp?id=167&
parentpath=0,1
http://www.zwbk.org/zhtw/Lemma_Show/131774.aspx
https://www.lb.lt/about_the_supervisory_acti
vities
http://www.zwbk.org/zhtw/Lemma_Show/131774.aspx
http://www.lb.lt/about
http://old.npf.org.tw/PUBLICATION/FM/090/
FM-R-090-059.htm
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Thank you for listening
http://www.youtube.com/watch?v=6mkvGvTVdgY
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