Oct 1, 2009
Lithuania Central bank tells Snoras to up capital
Lithuania’s central bank said on Wednesday it had ordered the country’s sixth-largest bank, Snoras, to raise capital and imposed limits on its risk-taking… Snoras had to shore up capital to cushion risks, mainly from operations with non-residents, but the bank was stable… A Snoras bank spokesman said the bank’s capital adequacy ratio was 8.42 percent at the end of the second quarter, compared to the minimum requirement of 8.0 percent.
Oops. 8.42 means should the bank’s equity decline 5%, it will brake the minimum requirement. In the last 12 month Snoras lost 9.32mn litas or 1.6% of equity. More to follow.
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