Supervisory Disclosure
The importance of supervisory transparency and accountability has been stressed by the Basel Committee on Banking Supervision and by the new European legislation (namely Directives 2006/48/EC and 2006/49/EC – Capital Requirements Directives). The Committee of European Banking Supervisors (CEBS) therefore developed a supervisory disclosure framework allowing meaningful comparisons. The tables of information in this section were developed by the working group of CEBS and are released on the individual homepages of the supervisory authorities of the EU Member States. The CEBS website serves as a centralised electronic repository and allows for a quick and easy comparison of the relevant information. The websites of the national supervisory authorities provide the exhaustive and detailed information required by the Capital Requirements Directives (CRD).
Content
In this section FCMC publishes and provides access to information regarding the texts of laws, regulations, administrative rules and guidance adopted in the field of prudential regulation and supervision in Latvia. The supervisory disclosure requirements cover options and national discretions, general criteria and methodologies used nationally in the Supervisory Review and Evaluation Process (SREP). This section also contains aggregate statistical data on key aspects of the implementation of the prudential capital adequacy framework in Latvia.
The content of the pages in this section has been divided into four sections:
· Rules and Guidance
· Options and National Discretions
· Supervisory Review
· Statistical Data
Rules and Guidance
This section provides information on legal and regulatory texts, including:
1. Laws and regulations adopted in Latvia to implement the Basel II provisions of the Directives 2006/48/EC and 2006/49/EC. These texts outline the primary supervisory requirements for supervised credit institutions and investment firms.
2. Administrative rules. There are a variety of definitions of administrative rules. For the purposes of disclosure they are understood as instructions to supervised entities to fulfil certain legislative and regulatory requirements.
3. General guidance includes explicit disclosure requirements of the Directives 2006/48/EC and 2006/49/EC and explanations deemed necessary to set out how the rules should be applied by institutions. Additionally, such guidance will cover any other relevant information that supervisory authorities may wish to release in order to enhance the understanding of the new capital adequacy framework.
Options and National Discretions
The Directives 2006/48/EC and 2006/49/EC contain a large number of options and national discretions which may be applied on the basis of national circumstances. This section is intended to make it easy for end-users to make a brief overview of how these options and national discretions are being exercised in Latvia.
Supervisory Review
This section includes information on general criteria and methodologies used by FCMC in the Supervisory Review and Evaluation Process (SREP), on the minimum requirements for institutions' Internal Capital Adequacy Assessment Process (ICAAP) and information on FCMC policy on application of supervisory actions and measures.
Statistical Data
This section includes aggregated statistical data on key aspects of the implementation of the prudential capital adequacy framework in Latvia. This section includes statistical data on the banking and investment firm sector, credit risk, operational risk, market risk and supervisory actions and measures applied in Latvia.
Related information:
For an overview regarding supervisory disclosure in the EU Member States see the corresponding tables on the CEBS homepage: http://www.c-ebs.org/Supervisory-Disclosure.aspx
CEBS "Guidelines on Supervisory Disclosure": http://www.c-ebs.org/getdoc/4a99922a-3a14-4500-b1bb-9002fe5e8d8c/GL05.aspx "
EU regulations:
Directive 2006/48/EC:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:177:0001:0200:EN:PDF
Directive 2006/49/EC:
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2006:177:0201:0255:EN:PDF