led “structural adjustment problems that were exacerbated due to the lack of proper procedures by which the banks could carry out business in their respective areas of operation. Hence, the Lithuanian banking system can be characterized to be in a flux or in movement from a state owned one to a modern banking system.
B) The Lithuanian banking system has been included in the common European currency area because of some of the factors discussed above. It has been included in the common European area due to the fact that its banking system has made the transition to the practices of the Euro region. On the other hand, the banking system in Lithuania has started to emerge from its socialist shadow and hence can be said to have matured enough to warrant inclusion into the common Euro area. Though the common Euro area is mainly a monetary union, the fact that the Lithuanian economy is developing a fast rate has resulted in its non-inclusion in the common Euro area. The other reasons or the cost benefit analysis that has been carried out has been in favor of the union with the Euro area because of the perceived gain to the Euro currency because of the relative robustness of the Lithuanian economy.
C) The European central bank had a role to play in the transformation of the Lithuanian banking system from a pre-modern one to a modern one. The ECB has extended all possible help to the Lithuanian banking system to make this transition possible. However, the fact that Lithuania is a part of the Euro area has led to a relatively major role for the ECB and the way in which the ECB has been guiding the transition makes it a stronger player than the central bank of Lithuania in the transition process. The ECB has mandated several requirements to the central bank of Lithuania as part of the process for acceptance and it is to the credit of the Lithuanian baking authorities that many of these requirements have been met.
D) The major export and import industries of