Development of activity of financial intermediation institutions in Lithuania

Darbe nagrinėjama Lietuvos finansinio tarpininkavimo sistemos (FTS) institucijų 1990-2000 metų laikotarpio veikla, FTS formavimosi problemiški santykiai ir patiriami nuostoliai, numatoma tyrimo objekto plėtros perspektyva. Tyrimo objektas - bankų, kredito unijų, draudimo ir lizingo įmonių, investicinių akcinių bendrovių, nacionalinės vertybinių popierių biržos, finansinio maklerio įmonių ir draudimo brokerių veikla. Nagrinėjamos finansinio tarpininkavimo (FT) santykių plėtros problemos gali būti prielaida, siekiant išvengti šalies ekonomikai nenaudingų sprendimų.Theoretical explanations and practice of foreign authors show financial intermediates organize retail of financial estate the most effectively. Financial intermediates cumulate a large amount of money, change them to loans or investment and distribute capital more effectively seeking financial profit through the demand-supply mechanism in financial markets. They also form much more rational structure of loaning and investment. There is reached a reduced risk of portfolios of credit and investment in a such way Redistribution of stock and its usage is much more effective than their direct distribution adjusting shortages of financial stock with its surplus in a state. Depending on financial estate transfer method and effectiveness of its usage state economical situation and rise of every citizen welfare changes. Compare to foreign developed countries, relations of financial intermediation are under formation in Lithuania and they are problematic sometimes. Dynamic international processes (new technologies, increased globalization in financial markets), affect processes, which are not analysed systematically, performed in financial intermediation system in Lithuania. Thus, periodical evaluation, acknowledgement and summarizing changes of financial intermediation system in our country is an actual scientific problem. There are institutions of financial intermediation (such as banks, Credit Unions, institutions of insurance and leasing and additional subjects of financial activity) system according to compulsory EUROSTAT classification in Lithuania during year 1990 - 2000 analysed, problematic relations and recent losses of system formation interpreted, perspectives of development of research subject in this article foreseen. The part of financial intermediation system to Lithuanian economy is not so big - it creates only 3% of GNP. Bank servises are the most developed in the analysed system (contains up to 94% and 84% asset and equity of all system), also leasing is developing, insurance activity becomes more active and activity of National Stock Market is developing the slowest (it is characted supply market, unclear processes). Due to a novelty of activity and insufficient practice there are not various operations of financial intermediation or not sufficiently developed technology of different operations performed. There is also a large shift of legislation, their absence or their disagreements and structural changes (especially in join stock limited companies), high expenses rate of financial institutions, insufficient clarity of activity. Authors suggest developing activity of institutions of Lithuanian financial intermediation in such ways: Lithuanian Bank should perform monetary policy more than fiscal one and seek stability of prices; to restrict borrowing of Government in the open financial market, to form financial stock by releasing bonds for economic individuals (especially banks), to perform more effective various services regarding foreign experience; to develop consumer, especially accommodation leasing, to legislate activity of leasing as financial, to apply more favorable taxation conditions; to use the disposable income and expenditure more effective, to decrease expenditures rate accordingly 20%, 2%, 30% until justificatory limit (30%) and seek clarity of activity for insurance brokers, credit unions, insurance personnel. According to authors opinion developing activity in above mentioned ways in Lithuania, it would obtain a long term developing and strengthening trend