Banks ' Reporting On Country Risk "rules Of Preparation

Original Language Title: Banku "Pārskata par valsts risku" sagatavošanas noteikumi

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Financial and capital market Commission Regulation No 37 in Riga in 2006 on 27 January (financial and capital market Commission Council meeting Protocol No 6, p. 3)
Bank "national report" risk provisions issued in the preparation in accordance with the financial and capital market Commission of law article 6, paragraph 1 of article 7, paragraph 1, first subparagraph, and article 17, paragraph 2, and article 50 of the law of credit institutions I. 1. "report on the State of risk" (hereafter referred to as report) the purpose is to provide information about their assets and off-balance sheet liabilities concentration in certain countries, due to the bank's transactions with non-residents the maturity composition of assets, as well as the factors that change the country risk.
2. Doing business with non-residents, the bank assesses the national economic, social and political effects on the residents of this State ( Government's) ability to meet its obligations in a timely manner to the bank (hereinafter – the country risks) and determine the corresponding country risk, also transfer risk (transfer risk), which is the country risk component and associated with the counterparty's ability to deliver its foreign currency management policy.
3. the bank shall inform the registered in the financial and capital market Commission (hereinafter the Commission) on the national risk management policy amendment not later than 30 days prior to their entry into force.
II. preparation of Report 4. report prepared under UPDK 0651005 form (annex 1).
5. the report shall show the assets, located outside Latvia, except the cash balance in a foreign currency (they are all currencies except the lat), and the associated participation in share capital of subsidiary and assets management (hereinafter: foreign assets), as well as the presentation of off-balance-sheet liabilities to non-residents.
6. the report on country names presented in alphabetical order. Country codes are presented according to the international standard ISO 3166 "countries and their territorial breakdown unit name code" (see. The Commission's internet website "links" menu).
7. Claims against international institutions, which are not registered as a resident of one country, such as the World Bank, the European bank for reconstruction and development, European regional development fund, the European investment bank, the World Trade Organization, the bank for international settlements, presented under the heading "international institutions" with a conditional code "66".
8. the requirement that the attraction of the country or international institution is not possible, presented under the heading "unclassified assets" with a conditional code "77".
9. foreign assets, which created special provisions for unsecured debts, presented according to the residual value.
10. foreign assets show a breakdown by remaining in the repayment term of sale or in the following groups: 10.1 to the request;
10.2. up to 180 days;
10.3.181 to 360 days from;
10.4. from 361 days;
10.5. overdue.
11. the remaining repayment of foreign assets or sales period shall be determined, subject to the following conditions: 11.1 repayment of remaining assets or sales period shall be determined in accordance with the refund laid down in a contract or sales deadlines or accept notifications for early repayment;
11.2. assets invested with the right to receive, on request, show the term "on demand";
11.3. held for trading and available for sale to non-resident financial instruments issued, which can be sold in a short time without significant losses, as foreign assets on demand or term in the group in accordance with the relevant financial instrument may deadline regardless of the term of this financial instrument;
11.4. repayment of assets or sales period is fixed, be considered in support of investment and show a maturity group "from 361 days";
11.5. the assets or part thereof, that late payment does not exceed 14 days, as foreign assets "to the request";
11.6. the assets or part thereof, that late payment is 14 days, presented as late Foreign assets.
12. foreign assets, which the country risk is transferred, and how they presented the country's foreign assets, from which the country risk is transferred, both as the country's foreign assets to which the country risk is transferred, taking into account in national risk transfer cases: 12.1. claims against a non-resident who is a resident of another country's commercial branch (called a foreign branch), considered the foreign assets that the country risks are carried over from the non-resident's country of registration to their country that has created a resident foreign affiliate;
12.2. the requirements to non-residents, for the performance of which is guaranteed by a resident of another country, consider foreign assets, which the country risk is transferred from the non-resident's country of registration to the country in which the resident has given a guarantee;
12.3. claims against non-residents that the security is registered in another State, shall be considered as assets, which the country risk is transferred from the non-resident's country of registration to the country in which it is registered in the security;
12.4. claims on non-resident who does not carry out the registration of economic activities in the country, considers foreign assets, which the country risk is transferred from the non-resident's country of registration to the country in which the economic activity takes place.
13. Outside the Latvian open bank affiliate transactions in national currency of the country concerned of its residents, the State in which the branch presented both report 01. the column "foreign assets" and accordingly, 02-06. the column "with the remaining repayment period" and the report "Bank in box 09 on affiliate transactions with non-residents".
14. the report column "10. Off-balance sheet liabilities to non-residents," the Bank of Latvia presented "monetary financial institutions a monthly balance report and preparation of the terms of the annex" 7.1 and 7.2 in a certain off-balance-sheet liabilities to non-residents total, which should match with the "monthly balance sheet" off-balance-sheet items (5100 and 5300. position 4.-6. box) reported amounts.
15. the amount presented in the report thousands.
III. Reporting procedures 16. report prepared for State the last date of the month report and submitted to the Commission by the 15th of the following month.
17. the report shall be drawn up in accordance with the Commission's Council decision No 156 16.07.2004. approved "electronically submit statistical reports preparation and dispatch rules".
18. If the Commission finds that the report has been prepared in error, for their review, the applicant is notified by email. If the Commission has not indicated otherwise, corrected report must be submitted not later than the working day following notification of the existence of the error from the Commission.
IV. final question 19. entry into force these rules shall lapse with the Commission Council decision No 19.10.2001.15/5 approved "Bank" country risk report "preparatory".
Financial and capital market Commission President When the U.