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Financial and capital market Commission Regulation No. 166 in the 2005 December 23 (Mon. No 48 2. p.)
Liquidity requirements, regulations Issued pursuant to the financial and capital market Commission of law article 6, paragraph 1 of article 7, paragraph 1, first subparagraph, and article 17, paragraph 2 of article 6 of the law of credit institutions, and article 37 (1) and (2) i. General questions 1. "liquidity requirements, rules" (hereinafter-the rules) is based on the requirements of the law of credit institutions, are binding on the Republic of Latvia registered banks and other national and foreign bank branches (hereinafter-the bank branch) and determines the liquidity requirements and their order.
2. Bank or bank branch assets located so as to ensure at any time the vendor legally based claims (liquidity).
3. to ensure the liquidity of the bank or the bank 3.1: the branch regularly assess and plan the maturity composition of assets and liabilities;
3.2. the bank shall maintain liquid assets commitments sufficient in amount, but not less than 30 percent of the bank's current commitment totals (liquidity). Current liabilities are related to the request, and liabilities whose residual maturity not exceeding 30 days.
4. Bank or bank branch develop a liquidity management policy, which States: 4.1. liquidity risk management methods (e.g. providing balanced (coherent) cash flows from assets and liabilities; maintaining highly liquid assets sufficient extent; providing the ability to borrow or otherwise raise money for liquidity maintenance);
4.2. internal limits of the maturity composition of assets and liabilities net liquidity positions, calculated according to the provisions of paragraph 11, as well as the net liquidity positions in dollars and in any foreign currency, in which the bank or bank branch conducted a significant amount of transactions or illiquid market;
4.3. the maturity composition of assets and liabilities evaluation procedures and frequencies;
4.4. internal limits the maximum amount of the deposit, which allowed to attract one client (a group of related client groups);
4.5. action in inner limit in the case of non-compliance;
4.6. the possible development scenarios analysis, t.sk. daily operating conditions, the crisis at the bank or bank branch conditions, the overall market (both in Latvia and abroad) crisis;
4.7. the action plan for a liquidity crisis.
5. the Bank or bank branch develop adequate internal control and management information systems to identify in a timely manner, analyze and control of liquidity risk.
II. Assets and liabilities maturity composition overview 6. Bank or bank branch "of the maturity composition of assets and liabilities report" (hereinafter the report) prepared under UPDK 0651031 form (annex 1).
7. the report of the Group of assets according to the remaining term for repayment or sales, liabilities and off-balance-sheet commitments, according to the remaining period of performance. For the remainder of the term shall be deemed time from reporting until the last day of the month the contract end date or the date on which in accordance with the provisions of the Treaty, the payments are due.
8. Off-balance-sheet commitments included in the report, if there is reason to believe that the counterparty demands it. The issued guarantee or other form of guarantee obligations created by this bank or bank branch located in the deposit, are not to be included in the report.
9. As off-balance-sheet requirements may be presented for receiving a loan with parent companies which are credit institutions zone A will.
10. Assets, which created special provisions for unsecured debts, presented according to the residual value.
11. In preparing the report, comply with 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, upon request, provides the term "on demand";
11.3. Notwithstanding the requirements of paragraph 7, held for trading and available for sale financial instruments that can be sold in a short time without significant loss, as well as financial tools that you can use as collateral to receive loans as assets "to the request", or the term of the group in accordance with the relevant financial instrument sales or loan receipt may deadline;
11.4. repayment of assets or sales period is fixed, be considered in support of investment and show a maturity band "from 361 days";
11.5. the assets or part thereof, that late payment is 14 days, presented as an overdue assets;
11.6. the assets or part thereof, that late payment does not exceed 14 days, presented as assets "to the request";
7.3. the assets or part thereof, which burdened the bank or bank branch liabilities, t.sk. involved in the repo transactions reported as assets pledged assets. The performance of the obligations provided by this pledge of assets as loans against mortgage of assets;
11.8. the remainder of the term of the commitment shall be determined in accordance with the current contractual deadlines or accept applications for early;
7.4. commitments with unspecified deadline, and the obligation to implement them shall, on request, be produced to the term "on demand";
11.10. the customer deposits the mortgage bank or bank branch to receive the credit (guarantee, guarantee the security of the URu.tml.), displays the corresponding maturity band according to the remaining term of the mortgage;
11.11. liabilities on deposits falling due are timed, but the client has requested the presentation of deposit term "on demand".
12. the maturity composition of assets and liabilities is assessed by calculating the net liquidity position as the difference between assets and liabilities in each term of the Group and the common position of liquidity as the difference between assets and liabilities in ascending time order.
13. The report separately to the bank or bank branch internal limits of the maturity composition of assets and liabilities net liquidity positions and this limit.
III. Liquidity indicators calculation 14. Banks ' liquidity index calculation (hereinafter calculation) prepare appropriate form 0651032 UPDK (annex 2).
15. The calculation of liquid assets are to be considered as such unencumbered assets: 15.1. cash in hand;
15.2. the requirements on the request to the Bank of Latvia and solvent credit institutions;
15.3. the claims against the Bank of Latvia and solvent credit institutions whose residual maturity not exceeding 30 days, and other deposits with the maturity, if the contract provides for the possibility to withdraw them before the deadline (except the fine amount for the pre-term fulfilment, if one is provided);
15.4. investments in financial instruments, if they have a permanent, unrestricted market, i.e. they can be sold in a short time without significant loss or use as collateral to receive loans.
16. In assessing the financial instrument concerned, sales opportunities, take into account the safety of the market of financial instruments, the number of transactions, the bank's financial instruments held by the ratio of the amount of the purchase and sale of the day.
IV. submission of Reports 17. report and prepares a report on the status of the last date of the month and submit the financial and capital market Commission (hereinafter the Commission) to the 15th of the following month.
18. the report and the Commission shall be drawn up in accordance with Council decision No 156 16.07.2004. approved "electronically submit statistical reports preparation and dispatch rules".
19. If the Commission finds that the reporting or calculation is made in error, it is notified by e-mail the report to the bailiff. If the Commission has not stated otherwise, the report must be submitted not later than the working day following notification of the existence of the error from the Commission.
V. closing question 20. entry into force these rules shall lapse with the Commission Council decision No 30.11.2001.21/8 approved "credit institutions ' liquidity requirements, rules".
Financial and capital market Commission President When the U.
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