Arunas Siksta, Hansa-bankas' board chairman, said the bank has a registered share capital of 33 million litas ($8.25 million) and has already grabbed 200 clients. Over the next three years, Hansabankas officials say they plan to take about 5 percent of the Lithuanian banking market.
"The fact that we are part of a strong, international banking group, provides solid support and allows Hansabankas to utilize a wealth of experience, which has been gained in a variety of international markets. This also allows us to jointly plan strategies for the innovation and introduction of new products," Siksta stated.
To try and send home the international flavor, five flags have been raised above the entrance to Hansa-bankas. The tri-colors of the three Baltic states are sandwiched between the bank's flag and Sweden's.
Germany's Nord-deutsche Landesbank Giro-zen-trale is another strong European bank which is planning to expand its activities in Lithuania. After opening a representative office in Vilnius a little more than year ago, the German bank is now planning to set up a branch office.
"Our intention is to serve our customers. And we think we can serve them even better with a [branch office in Vilnius]," said Berndt Krucke-berg, head of Norddeutsche Landes-bank's representative office.
Although Kruckeberg said his bank has yet to submit an application to the central bank for the establishment of the branch, he predicted its opening by the end of this year.
Poland's Kredyt Bank and France's Societe Generale are also carrying out activities in Lithuania.
The foreign banks' intrusion into Lithuania's market, naturally means stiffer competition for domestic banks. But Eugenija Martinaityte, director of the Lithuanian Banking, Insurance and Finance Institute, believes the new arrivals will help keep the domestic banks on their toes.
"This is probably the time in which real competition begins in banking here," said Martinaityte. "I am [pleased] with the arrival of Hansabankas and I think it will be a strong competitor in the banking sector. Local banks will have to [step up] their services."
Eduardas Vilkelis, head of the Lithuanian Commercial Bankers' Association, also seemed to view the arrival of foreign banks from a positive angle.
"There is enough room for the foreign banks. The market still has gaps," said Vilkelis. "Besides, competition is always good because it stimulates new ideas and projects."
The closest thing Lithuania has to a heavy-weight in the banking sphere is Vilniaus Bankas, the largest domestic commercial bank. Vilniaus could further enhance its strength by merging with its rival, Hermis. The two banks have announced their intention to merge, but still need to get their plans blessed by the central bank.
Both Martinaityte and Vilkelis noted that a Vilniaus-Hermis combo would certainly be more competitive but nevertheless would be weaker than the foreign arrivals.
"These foreign banks are giants compared to our local banks," said Vilkelis. "Still, the competition will make our banks think of new kinds of service and on a wider scale."
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