Introduction
The right place for opening a regional bank overseas in order to serve those businesses that are expanding internationally would be Lithuania. The main reason for choosing this country is that Lithuania is the financial technology center in Europe. Therefore, it would be beneficial for the bank to establish some offices there and organize financial services for the businesses that desire to operate at a global level. However, before opening a branch in Lithuania, the bank has to consider various elements and highlight possible challenges that can emerge during the work process.
Main body
Lithuania is a developed country, and its democratic nature will allow the bank to provide services to organizations that want to expand their operations to various countries with different cultural characteristics. In addition, the social and academic intelligence of Lithuanian citizens will give a possibility to hire professionals who possess a significant amount of knowledge in business and communication. Furthermore, the country’s political and legal systems are transparent and properly organized, which means that the bank will not experience any complications while trying to establish a system of work. The management will be able to develop an appropriate financial institution that would operate legally and partner with various businesses all over the world.
Since the government gives private sector autonomy, freedom, and does not control all the operations of businesses, the financial institution will also not be significantly affected by the decisions of the state. At the same time, the bank branch will still need to follow the laws of Lithuania, engage in legal requirements, and act according to the current Constitution to prevent the appearance of misunderstandings and challenges. For this reason, the bank administration has to put considerable effort into gaining knowledge about various responsibilities and rules.
Additionally, Lithuania is an advanced country in the sense of economic development. After becoming a member of the European Union in 2004, the country has gone through significant growth and a quick modernization of the economy (Williams & Horodnic, 2015). At the moment, the economic system of Lithuania is described as a market economy in which the private sector takes over the majority of GDP, and the regulations of the government are efficient and transparent (Williams & Horodnic, 2015). Even though Lithuania was negatively influenced by the financial crisis in 2009, it has experienced the fastest recovery in Europe (Williams & Horodnic, 2015). The state currently has a well-performing banking system and a diverse industrial sector, making it a perfect place for business and international partnerships.
Lithuania is an open country when it comes to international trade. Over the last few years its export and import levels increased (Williams & Horodnic, 2015). The government of the country pays significant attention to trade issues and trends and tries to adapt to the constantly changing situation on the market. The country’s trade ambitions should benefit the financial institution because they will attract more international clients from various industries.
Conclusion
Overall, Lithuania is a perfect country to open a new branch of the regional bank. It is a highly developed state with significant achievements in economics and international trade. Moreover, the government is transparent and cares for the private sector. Even though the management might experience challenges while gaining knowledge about the laws and regulations that exist in Lithuania, it is worth opening a new office there.
Reference
Williams, C. C., & Horodnic, I. A. (2015). Explaining and tackling the shadow economy in Estonia, Latvia and Lithuania: A tax morale approach. Baltic Journal of Economics, 15(2), 81-98.