FCMC warns JSC “TRASTA KOMERCBANKA” and its executives over weaknesses of reputation and credit exposure assessment

18.08.2015
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Press Release 

13.08.2015 

FCMC warns JSC “TRASTA KOMERCBANKA” and its executives over weaknesses of reputation and credit exposure assessment 

The Board of the Financial and Capital Market Commission (FCMC) decided to issue a warning to JSC „TRASTA KOMERCBANKA”, including Chairman of the Board Gundars Grieze and members of the Board Viktors Ziemelis and Māris Fogelis, over deficiencies identified during an inspection regarding assessment of such material risks for the credit institution as reputational and credit risk in individual transactions. 

The Bank had entered into transactions that exposed it to increased reputational and credit risk, whereas the chairman of the Board and above members of the Board, participating in decision-making and approving of bank’s involvement in transactions, had not taken all feasible measures to prevent it. Therefore the requirement that prudent policies shall be implemented in the bank in accordance with Article 34.2 (1) of the Credit Institution Law was not met. 

In deciding on applying sanctions FCMC takes account of the nature of infringement, its gravity, degree of responsibility of the persons involved and other factors. In view of the measures taken by the bank and above executives, as well as risk reassessment conducted by the bank, FCMC decided that to issue a warning would be a proportionate action. 

Decision recipients have the right to contest the decision applying to FKTK within one month or file an appeal with the Regional Court of Administrative Cases.

Further information: 

Elīna Avotiņa

Public Relations Specialist 

Communications Division

Financial and Capital Market Commission 

Telephone +371 67774860, +371 27435292, 

elina.avotina@fktk.lv

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