Regulatory Alerts2013-03-19
Added · Updated
Regulations on the Assessment of Consumer Creditworthiness and on Responsible Lending
The Board of the Bank of Lithuania issued these Regulations to mandate responsible lending practices and define creditworthiness assessment requirements for creditors and peer-to-peer lending platform operators. The rules require lenders to assess consumer solvency based on sustainable income and existing obligations, enforcing a general debt service-to-income ratio cap of 40% unless sufficient evidence justifies a higher threshold. Additionally, the document stipulates strict information collection protocols, including foreign exchange risk notifications and data retention periods, to ensure accurate evaluation of a consumer's ability to repay.
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