Published: 07.12.2022

Latvijas Banka regulates and oversees the sector of the Latvian commercial banks in close cooperation with the European Central Bank within the scope of the Single Supervisory Mechanism and with the European Supervisory Authorities, pursuant to the best international credit institution supervisory practices and operational frameworks.

The main principle of supervision is to identify, as soon as practicable, any problems in the financial market or in the activity of an individual market participant in order to immediately issue the supervisor’s opinion and recommendations or to require the elimination or minimisation of the problems.

Latvijas Banka continues to work on strengthening the framework for the supervision of credit institutions, ensuring a comprehensive supervisory process, as well as promoting the operation and development of a stable and crisis-resistant sector of credit institutions.

Risk-based supervision is one of the key principles of supervision. Under this principle, Latvijas Banka is constantly assessing the performance of banks within the Supervisory review and evaluation process, the level of risks and the quality of their management; and based on the results of the monitoring of these risks, plans the necessary supervisory measures.