Lithuanian Banking Association
LBA
The main goal of LBA is to enhance Lithuanian banking industry.
ID: 221783320751-66
Lobbying Activity
Meeting with Maria Luís Albuquerque (Commissioner) and
7 Nov 2025 · Savings and Investments Union (SIU) Financial Literacy Pensions Regulation and deepening of the Internal Market
Response to Clean corporate vehicles
8 Sept 2025
Lithuanian Banking Association (LBA) members understand and acknowledge the indispensable role of financial sector participants in achieving sustainability goals. European banks are currently implementing a number of sustainability commitments, driven by both supervisory expectations and legislative mandates. Banks are supporting the Green Deal and have proactively embraced their role in supporting the green transition. Major banks in Lithuania are calculating their CO2 emissions and have set ambitious emission reduction targets. Banks have also developed and deployed a range of sustainable finance products, offering price incentives, including those for low/zero emission transport. ECB is further urging banks to increase the scope of their emission reduction targets and strengthen sustainable customer incentives. Imposing additional requirements risks overburdening banks at a time when they are already navigating complex regulatory landscapes and geopolitical uncertainty. The potential regulation identified in the Initiative limiting the number of polluting vehicles permitted in a corporate fleet may be effective in a broad sense but is excessive and flawed if this requirement is also applied to the banks. The corporate fleet composition control should be performed through the vehicle operator, but not through the vehicles legal owner, because: 1) The financial institution is only an intermediary in the acquisition of a vehicle, therefore, in order to achieve corporate fleet decarbonization goals, it is appropriate to calculate the composition of the fleets of the financial institutions clients. 2) If the composition of corporate fleets will be calculated based on the legal owner of registered vehicles, then it will be difficult to identify the exact composition of corporate fleet used by the company carrying out economic activities with significant fleets and using for it leasing or operating lease services such vehicles will be assigned to financial institutions. 3) Controlling the composition of the corporate fleet through the owner and applying these requirements to financial institutions creates an unequal condition of competition. Due to the improperly selected control subject, vehicle operators borrowing from banks will have unequal opportunities to borrow. 4) If the corporate fleet is calculated strictly per legal owner, this would also affect the borrowing opportunities of private customers, because once the quotas are exhausted, there would be fewer opportunities to lend to private customers whose financial capabilities do not allow them to purchase an electric vehicle and the infrastructure for it. 5) Some vehicles could potentially be financed through other financial instruments, i.e. without the financial institution acquiring the assets in the legal ownership, which would increase borrowing costs and reduce the possibilities and attractiveness of purchasing a sustainable vehicle. 6) Regulation where the composition of the corporate fleet is calculated strictly per owner would reduce the possibility of lending using leasing and operating lease services to public sector corporates. These subjects are allowed to acquire different types of vehicles and obliged to acquire assets through public procurement - with quota restrictions, financial institutions would not be able to participate in leasing or operating lease tenders, and as a result, competition would decrease and borrowing costs in this sector would increase. LBA members suggest avoiding the EU regulation restricting how many and what type of vehicles can be in the banks ownership if the vehicles are purchased specifically for financing purposes. Financial institutions providing leasing and operating lease services must be exempted from this regulation, as they can contribute to Green Deal and decarbonization of corporate fleets most significantly and effectively precisely in other ways. You can find detailed information in the document attached.
Read full responseMeeting with John Berrigan (Director-General Financial Stability, Financial Services and Capital Markets Union)
9 Feb 2024 · Lithuanian Solidarity Tax