Latvijas Banka cooperates closely with the Ministry of Finance as the leading public administration authority that implements the financial sector policy.
Latvijas Banka and the Ministry of Finance have signed a cooperation agreement and established the Macroprudential Council – a collegial permanent consultative body for mutual cooperation with the aim to promote the stability of Latvia's financial system as a whole, including by strengthening the resilience of the financial system to shocks and by limiting the build-up of systemic risks.
Latvijas Banka and the Ministry of Finance cooperate with each other – exchange the required information, hold consultations about the systemic risk assessment and the measures to mitigate the financial stability risks as well as assess the effectiveness and efficiency of the implemented measures, while understanding and having regard to the independence of Latvijas Banka and the Ministry of Finance in decision-making within their respective areas of responsibility.
The members of the Macroprudential Council comprise:
- the Governor of Latvijas Banka,
- a member of the Council of Latvijas Banka who is responsible for macroprudential policy issues,
- a member of the Council of Latvijas Banka who is responsible for issues related to regulation and supervision of the operation of the financial market and its participants,
- the Minister for Finance,
- the Deputy State Secretary of the Ministry of Finance for financial policy issues.