As of 2023, the financial and capital market supervision and the financial sector resolution as well as the protection of financial sector customers will fall within the remit of Latvijas Banka, as decided by the Saeima of the Republic of Latvia. As a result, Latvijas Banka and the Financial and Capital Market Commission (FCMC), which is currently in charge of the supervision and resolution of the financial sector, will be integrated into one powerful and efficient institution as of 2023.
Why is the integration of Latvijas Banka and the FCMC taking place?
The integration of the central bank and the financial market supervisor will bring multiple gains to society.
Combining staff expertise and skills as well as other resources of both institutions will provide an opportunity to use them more efficiently in order to:
- facilitate the financial sector's stability and mitigate systemic risks;
- shape a comprehensive, broad vision of the financial sector's development;
- reduce the total costs.
Evaluation report (in Latvian)
What is the legal framework for the integration?
The integration is being carried out in accordance with the Law on Latvijas Banka adopted by the Saeima of the Republic of Latvia on 23 September 2021 and taking effect on 1 January 2023 as well as the transitional provisions included in the Law "On Latvijas Banka".
How is the integration process organised?
All decisions necessary for a successful integration are taken by the Integration Commission composed of representatives of Latvijas Banka and the FCMC. Based on the parity principle, each institution is represented on the Commission by three Council or Board Members respectively:
Chairman of the Commission: Mārtiņš Kazāks, Governor of Latvijas Banka;
Deputy Chairperson of the Commission: Santa Purgaile, Chairwoman of the FCMC;
Members of the Commission:
- Kristīne Černaja-Mežmale, Member of the Board of the FCMC;
- Māris Kālis, Deputy Governor of Latvijas Banka;
- Ilze Posuma, Member of the Council of Latvijas Banka;
- Ģirts Rūda, Member of the Board of the FCMC.
Both institutions are being integrated in accordance with a work plan that comprises all tasks necessary for the implementation of this process.
Each institution has appointed its own integration project manager who is tasked with ensuring effective project management. Both project managers cooperate on a daily basis solving project management issues and coordinating the implementation of the work plan:
- Latvijas Banka: Ilze Posuma, Member of the Council;
- the FCMC: Sigita Ozola, Head of the Administrative Department.
The practical work of the project is carried out in thematic working groups (a total of 10) established for every function of Latvijas Banka and the FCMC affected by the integration. The working groups also operate on the basis of the parity principle and comprise an equal number of representatives of Latvijas Banka and the FCMC.
What changes will the public see?
The main benefit from the integration of Latvijas Banka and the FCMC enjoyed by the public and financial sector participants will be a more powerful and efficient organisation that facilitates sustainable development of the financial sector and economy.
The population will also receive a full range of quality services provided by Latvijas Banka and the FCMC to society in 2023 and beyond.