Financial and capital market Commission, the provisions of regulations No 133 in Riga august 12, 2015 (financial and capital market Commission Council meeting Protocol No 28 7 p.) Credit institution-specific capital reserves a counter-cyclical role norms calculation Regulations Issued in accordance with the provisions of the credit institutions act, article 22.2 i. General questions 1. ' credit institution specific capital reserves a counter-cyclical role norms calculation regulations "(hereinafter-the rules) determines the order in which a credit institution is calculated in an anti-cyclical behaviour in specific capital reserve rules (hereinafter referred to as the KSPKRN). 2. The rules are binding on the Republic of Latvia registered credit institutions and those in the Republic of Latvia registered investment brokerage firms, which are applicable to capital adequacy regulatory requirements in accordance with the financial instruments market law and article 121.1 of 119.1. 3. the credit institutions established in the rules are binding on the individual and group level of consolidation in European Parliament and Council Regulation No 575/2013 for the prudenciālaj requirements for credit institutions and investment firms (hereinafter the regulation) of title II, Chapter 2 of the requirements laid down in consolidation. If a Member State or in a foreign country, the Republic of Latvia registered subsidiary of the credit institution, the capital reserves in an anti-cyclical behaviour rules (hereinafter PKRN) is different from the financial and capital market Commission (hereinafter the Commission) to that Member State or in a foreign State, the appropriate specific PKRN subsidiary individual level KSPKRN is used in the calculation of the Member State or foreign country, but consolidation PKRN group level – the PKRN fixed by the Commission. 4. the terms used in these rules shall comply with the law of credit institutions and financial instruments market law. II. calculating KSPKRN 5. KSPKRN exposed to credit risk shall apply to the transactions, which are mentioned in article 112 of regulation, with the exception of the article "a" through "f" referred to the exposures. 6. the credit transaction, the geographic location (national) determined in accordance with the European Commission on 4 June 2014 delegated Regulation (EU) no 1152/2014, supplementing the directive of the European Parliament and of the Council of 13/36/EU for regulating technical standards for the credit business in the geographical location of the discovery, authorities in the capital reserves of a counter-cyclical role specific. 7. the country concerned credit transactions is subject to the following: 7.1 PKRN transactions with residents of the Republic of Latvia, the Commission determined the PKRN;

7.2. transactions with residents of Member States: 7.2.1. competent authorities of the Member State set if it is not the PKRN higher than 2.5 percent, 7.2.2. PKRN 2.5 percent if the responsible authority of the Member State the PKRN is higher than 2.5 percent, on the condition that the Commission is not recognized by the Member State, the Commission recognised PKRN 7.2.3. If the Member State responsible PKRN authority PKRN is higher than the 2.5 percent; 7.3. transactions with foreign residents: 7.3.1 foreign authorities determine the PKRN if not higher than 2.5 percent, on the condition that the Commission has not identified any other transactions with the foreign PKRN residents 7.3.2 PKRN 2.5 percent, if the foreign authority responsible PKRN is higher than 2.5 percent, on the condition that the Commission has not recognised these foreign PKRN and the other is not specified by these foreign PKRN transactions with residents 7.3.3. Accepted by the Commission, or, if the foreign PKRN defined responsible authority PKRN is higher than the 2.5 percent Commission down the PKRN 7.3.4. transactions with foreign residents, if the foreign authority not PKRN. 8. Date from which the relevant example if it you increase the PKRN is: 8.1. transactions with residents of the Republic of Latvia, the date laid down in the communication from the Commission in accordance with the law of credit institutions in the seventh paragraph of article 22.1; 8.2. transactions with residents of Member States: 8.2.1. date established for the Member State concerned responsible authorities notice its website online, if that Member State's competent authority PKRN no higher than 2.5 percent, 8.2.2.2.5 percent from the date fixed by the Member State concerned responsible authorities notice its website online, if that Member State's competent authority is higher than 2.5 PKRN percent provided that the Commission is not recognized by the Member States, this PKRN 8.2.3. in full from the date laid down in the communication from the Commission to the Member State responsible authority PKRN is higher than 2.5 percent, on the condition that the Commission has recognised the PKRN laid down by that Member State; 8.3. transactions with foreign residents: 8.3.1. the day following the 12 months after the date specified in the relevant foreign authority notice, if the foreign authority responsible PKRN no higher than 2.5 percent, on the condition that the Commission has not identified any other transactions with the foreign PKRN residents, t.sk. then, if the foreign authority has established credit institutions registered in a foreign country for a shorter period, PKRN 8.3.2.2.5 percent, from the day following the 12 months after the date specified in the relevant foreign authority notice, if the foreign authority responsible PKRN is higher than 2.5 percent, on the condition that the Commission has not recognised these PKRN and the foreign, with the condition that the Commission has not identified any other transactions with the foreign PKRN residents , t.sk. then, if the foreign authority has established credit institutions registered in a foreign country for a shorter period, 8.3.3. in full from the date fixed in the notice of the Commission, if the Commission has recognised the PKRN foreign, 8.3.4. If PKRN about fixed by the Commission, the date of the Commission notice on the determination of foreign PKRN transactions; 8.4. a foreign country specified PKRN changes deemed notified on the day when the relevant foreign authority shall publish, in accordance with the applicable national rules. 9. where the Commission or a Member State, or a foreign authority shall notify the decision to reduce, the credit institution shall apply PKRN immediately, unless the Commission otherwise. 10. KSPKRN calculated as PKRN applied in countries with which the credit institution shall take residents subject to credit risk exposures, or applied, on the basis of a Commission decision, the weighted average index. A credit institution calculates the KSPKRN the following steps: 10.1 every PKRN multiplied by the applicable credit institution capital requirements total credit transactions with residents of the country concerned, calculated in accordance with the third subparagraph of the regulation, (II) and (IV) section; 10.2. the amount of the corresponding provisions of paragraph 10.1 requirements calculated results; 10.3. the amount obtained in point 10.2 of the rules in that order, divided by total equity requirements for credit institutions the relevant credit risk referred to in paragraph 5. 11. information about the PKRN is found in the European systemic risk Board website on the internet. 12. a credit institution for information about specific counter-cyclical role it capital reserves requirement found in accordance with article 440 and the European banking authority 2014 23 December Regulating technical standards EBA/RT/2014/17. Iii. Closing question 13. Regulations shall enter into force on January 1, 2016. Informative reference to European Union directives and other international documents the rules included provisions resulting from: 1) European Parliament and Council Directive 2013/36/EC on access to, and the business of credit institutions and investment brokerage company the prudenciāl surveillance; 2) European Parliament and Council Regulation No 575/2013 for the prudenciālaj requirements for credit institutions and investment firms; 3 European Commission 2014) 4 June delegated Regulation (EU) no 1152/2014, supplementing the directive of the European Parliament and of the Council of 13/36/EU for regulating technical standards for the credit transaction to determine the geographical location of the institution specific counter-cyclical role for calculating the capital reserves; 4) the European banking authority 2014 23 December Regulating technical standards EBA/RT/2014/17 on the disclosure of information in respect of the requirement for a counter-cyclical role the institutions of the capital reserve pursuant to Regulation No 575/2013 440. article. Financial and capital market Commission President k. Zakuli States