Lithuanian Banks’ Credit Quality Hurt by Ukio Woes, Moody’s Says
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The suspension of Lithuania’s Ukio Bankas AB 14 months after Snoras Bankas AB’s bankruptcy will further erode confidence in the Baltic nation’s banking industry and may hurt liquidity, Moody’s Investors Service said.
“The suspension of Ukio’s license is credit negative for all Lithuanian banks, particularly locally owned ones, because it undermines confidence in the banking sector, thereby increasing liquidity risk,” Moody’s analyst Blake Foster said today in an e-mailed report from London.