Authors of the material are partner Dalia Augaitė and associate Nortautas Zenevičius. The article is published on Baltic Capital Markets website: here.
Historically, asset-backed securitisation has tended to be employed as a source of financing where two principal conditions are satisfied: (i) bank lending has become less accessible or more costly, prompting undertakings, particularly SMEs, to seek alternative sources of funding,1 or banks themselves require additional capital and liquidity;2 and (ii) a portfolio of assets suitable for securitisation has been, or can effectively be, accumulated on a revolving basis.3
Securitised portfolios most commonly comprise residential mortgage, consumer or business loans4 and, in the Lithuanian context, loans for the modernisation of multi-apartment buildings. In 2025, the portfolio of bank loans and other advances in Lithuania amounted to EUR 49.4b, representing an increase of 24.9% compared with 2024.5 Loans to households alone grew by 19.8%
