Macroprudential measures introduced in Latvia

Countercyclical capital buffer (CCyB)

0.0%

0.5%

1.0%

01.05.2022

18.12.2024

18.06.2025

(decision adopted on 18.12.2023)

The need to change the previous decision is reviewed on a quarterly basis

Capital buffer for other systemically important institutions (O-SIIs)

Swedbank Baltics AS – 2.00%
AS Citadele banka – 1.75%
AS SEB banka – 1.75%
AS Rietumu banka – 0.75%
BluOr Bank AS – 0.25%

20.12.2023

(decision adopted on 18.12.2023)

Reviewed on an annual basis

Loan-to-value (LTV) ratio

90% for all loans to consumers exceeding 100 minimum wages and secured by a mortgage on real estate

12.06.2007
(law adopted on 17.05.2007)

95% for loans secured by a mortgage on real estate and state guarantee in accordance with the Law on Assistance in Solving Apartment Matters

25.09.2014
(law adopted on 18.09.2014)

70% for buy-to-let housing loans or other housing loans generating income as a result of real estate activities

(the tolerance margin may not exceed 10% of the institution's newly granted loans to natural persons in a quarter)**

01.06.2020

(regulation adopted on 27.11.2019)

(amendments** adopted on 18.12.2023 and in force as of 01.01.2024)

Debt service-to-income (DSTI) (the total monthly amount of debt payments to financial institutions to the borrower's monthly net income)

40%

45%** to loans for obtaining energy efficient housing
(the tolerance margin may not exceed 10% of the institution's newly granted loans to natural persons in a quarter)

Debt-to-income (DTI) ratio

6 times

8 times** to loans for obtaining energy efficient housing
(the tolerance margin may not exceed 10% of the institution's newly granted loans to natural persons in a quarter)

Loan maturity limits

30 years for housing loans, 7 years for consumer loans
(the tolerance margin may not exceed 10% of the institution's newly granted loans to natural persons in a quarter)

30.06.2024

(decision adopted on 18.12.2023)