Polish Bank PKO BP to Establish Presence in Lithuania
Vilnius, lithuania - November 8, 2024 – A new banking competitor is poised to enter the Lithuanian market as Poland’s PKO Bank Polski (PKO BP) prepares to launch operations in the coming months.The move signals increasing foreign investment in Lithuania’s financial sector and potential new options for corporate clients.
Announced initially in mid-September via reports in Polish media citing PKO BP Vice President Marek Radzikowski, the bank’s expansion includes plans to operate in eight new countries by 2027. This strategy encompasses the opening of four representative offices and four full branches. Lithuania is among the first wave of targeted locations, with the initial phase focusing on serving corporate customers.
According to statements made to journalists on November 7, 2024, by Lithuania’s Finance Minister, the establishment of a representative office is “very likely” in the near future, with the bank seriously considering broader commercial activities. While details remain unconfirmed,the Minister indicated the bank views the Lithuanian market favorably.
The Bank of Lithuania anticipates PKO BP will provide meaningful competition within the corporate banking segment,potentially challenging established Lithuanian financial institutions. PKO BP already maintains a presence in several European markets, including Germany (since 2015), the Czech Republic (since 2017), Slovakia (since 2021), and recently, Romania.
This growth follows recent activity from other international banks exploring opportunities in Lithuania. A delegation from Poland’s Pekao bank visited the country earlier this year, and in December 2023, the Bank of Taiwan announced its intention to begin operations. Commerzbank of Germany also opened a Lithuanian representative office in december 2023, concentrating on business financing rather than direct consumer banking services.
currently, Lithuania’s banking sector comprises 18 participants, dominated by Swedbank, SEB, and Luminor.
