1. Student ID:MA3N0202 Name: Li-Wen Chang(Jenny) 1

2.  What’s the “Financial supervision mechanism”  The Financial Supervisory Commission (FSC)  Case ─ The Bank of Lithuania  Conclusion  Reference material 2

3. 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. 3

4.  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. 4

5.  2. Operations supervision The risk of financial institutions, is gradually formed and accumulated in the course of daily business operations. 5

6. 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. 6

7.  3.Market exit regulation  Financial institutions out of the market in the form of the main dissolved, withdrawn (closed) and bankruptcy three forms.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. 7

8. 8

9.  FSC was established on 1 July 2004  Supervision, regulation, and examination  Create a sound, fair, efficient, and internationalized environment for financial industry Strengthen safeguards for consumers and investors 9

10. Maintaining financial stability Implement financial reform Assist industry development Strengthen consumer and investor protection and financial education Establish a fair, healthy and profitable financial environment, to enhance the competitiveness of the financial sector 10

11. Committee meetings Financial Supervisory Commission Chairman Vice chairman Chief Secretary Bank Board Securities and Futures Bureau Insurance Bureau Inspection Bureau Integrated Planning Office International BusinessDepartment Legal Office Information Services Office of the Secretary Personnel OfficeComptroller roomPolitical plenum 11

12. http://www.lb.lt/financial_stability 12

13.  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 13

14.  Commercial banks, other credit, payment institutions, securities and insurance markets  Investigates disputes between consumers and financial institutions 14

15.  Supervision of Credit Institutions The goal of the supervision of credit institutions is to monitor compliance of credit institutions with the standards of safe  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. ≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡ 15

16.  Supervision of Payment Institutions A payment institution is an economic entity providing payment services  Off-site inspections of payment services provided by payment institutions  Additional services closely related thereto ≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡≡ 16

17.  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. 17

18.  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 18

19.  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. 19

20.  Unified financial supervision system  Establishment of a financial holding company  Principle of functional management  A fair and reasonable financial environment Government Financial Management Financial business organizations 20

21.  http://www.fsc.gov.tw/ch/home.jsp?id=167& parentpath=0,1 http://www.fsc.gov.tw/ch/home.jsp?id=167& parentpath=0,1  http://www.zwbk.org/zh- tw/Lemma_Show/131774.aspx http://www.zwbk.org/zh- tw/Lemma_Show/131774.aspx  https://www.lb.lt/about_the_supervisory_acti vities https://www.lb.lt/about_the_supervisory_acti vities  http://www.zwbk.org/zh- tw/Lemma_Show/131774.aspx http://www.zwbk.org/zh- tw/Lemma_Show/131774.aspx  http://www.lb.lt/about http://www.lb.lt/about  http://old.npf.org.tw/PUBLICATION/FM/090/ FM-R-090-059.htm http://old.npf.org.tw/PUBLICATION/FM/090/ FM-R-090-059.htm 21

22. Thank you for listening 22 http://www.youtube.com/watch?v=6mkvGvTVdgY