The Single Resolution Mechanism has been operational in the European Union since 2016, when the Regulation of the European Parliament and of the Council on the Single Resolution Mechanism entered into force in full.
The resolution mechanism was established pursuant to Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 (Bank Recovery and Resolution Directive) on the recovery and resolution of credit institutions and investment firms This directive provides for common resolution tools and resolution powers available to the resolution authorities of each Member State, but leaves it in discretion of the resolution authorities of the Member States to apply these tools and use national financing arrangements for the support of the resolution procedures.
In Latvia, the provisions of this directive have been fully introduced in the Law on Recovery and Resolution of Credit Institutions and Investment Firms.
Resolution
- Law on Recovery of Activities and Resolution of Credit Institutions and Investment Firms
- The Financial and Capital Market Commission's regulations of 29 March 2022 No 37 Regulations on the information necessary for drawing up the resolution plan of an institution or financial corporation and the resolvability assessment of an institution or group (available in Latvian)
- The Financial and Capital Market Commission's regulations of 25 August 2020 No 139 Regulations on the determination of the circumstances in which an institution is considered to be failing or likely to fail (available in Latvian)
National Resolution Fund
- The Financial and Capital Market Commission's regulations of 31 March 2020 No 40 Regulations on payments of investment firms to the National Resolution Fund (available in Latvian)
Directly applicable EU legal acts
- Commission Implementing Regulation (EU) 2018/1624 of 23 October 2018 laying down implementing technical standards with regard to procedures and standard forms and templates for the provision of information for the purposes of resolution plans for credit institutions and investment firms pursuant to Directive 2014/59/EU of the European Parliament and of the Council, and repealing Commission Implementing Regulation (EU) 2016/1066 (Text with EEA relevance)
- Commission Delegated Regulation (EU) 2015/63 of 21 October 2014 supplementing Directive 2014/59/EU of the European Parliament and of the Council with regard to ex ante contributions to resolution financing arrangements
- Commission Implementing Regulation (EU) 2021/763 of 23 April 2021 laying down implementing technical standards for the application of Regulation (EU) No 575/2013 of the European Parliament and of the Council and Directive 2014/59/EU of the European Parliament and of the Council with regard to the supervisory reporting and public disclosure of the minimum requirement for own funds and eligible liabilities (Text with EEA relevance)
Data submission
Data are submitted to Latvijas Banka via the data reporting system.