Lithuania’s central bank said Tuesday that Hungarian lender OTP Bank’s continued operations in Russia raise “justified questions” as regulators begin reviewing its proposed acquisition of Baltic banking group Luminor.
The Bank of Lithuania said the transaction, announced Monday, is still in its early stages and that it has not yet received the formal documentation needed to begin its assessment.
“The fact that the group operates in Russia raises justified questions,” the central bank said in a statement.
The proposed acquisition will be assessed by the European Central Bank in coordination with Estonia’s Financial Supervision and Business Restructuring Authority and in consultation with the Bank of Lithuania.
The Lithuanian regulator said the review would examine OTP’s reputation, financial strength, corporate governance, risk management, compliance with international sanctions and anti-money laundering requirements, as well as other factors relevant to financial stability.
