Financial and capital market Commission, the provisions of regulations No 313, Riga, 13 November 2010 (pr. No 44 p. 6)
Exposure limit enforcement, regulations Issued under the provisions of the credit institutions act, article 42 of the fourth paragraph, the third subparagraph of article 43, article 50.8 sixth, eighth article 50.9 and financial instruments market law 122. the fourth part of article i. General questions 1. "exposure limit enforcement regulations" (hereinafter-the rules) determine exposure limits exposures subject, this business about the procedure for determining , exceptions and tolerances of the exposure limits, the amount of own funds of credit institutions, the procedure for determining the law article 35, first paragraph, point 3, article 42 and 43. and financial instruments market law 121 of the first paragraph of article 3 and the second paragraph of article 122 of the specific exposure limit in the calculation of performance, as well as the review of the large exposures, exposures to persons associated with a credit institution or investment firm and review of the restrictions for the preparation and submission of the overrun.
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 article 121, (hereinafter body), except for the financial instruments market law. Article 122 of the sixth part of that investment brokerage company.
3. the requirements for credit institutions and article 43 of the law on the financial instruments market law article 122, first paragraph, referred to in paragraph 4 of the exposure limits authority respected individual, but all other requirements – individual and group consolidation for consolidation or subgroup level in accordance with the law of credit institutions, and article 50.9 and 50.8 on the financial instruments market law 123.3 and 123.4 article.
4. explanation of terms used in the rules: 4.1 active roles of exposures reported carrying amount is in accordance with the financial and capital market Commission (hereinafter the Commission) on 24.02.2006. regulatory arrangements no 46 "banks, investment companies and investment management company of the annual accounts and the consolidated annual report" a specific accounting value;
4.2. exposures to investment firms or claims against investment brokerage firms within the meaning of this provision means the exposures to and claims against such investment brokerage firms that meet the financial instruments market law, article 1, paragraph 3 of the given investment brokerage company (investment firm) and which apply capital adequacy regulatory requirements in accordance with the financial instruments market law article 121, taking into account the provisions of article 119.1 of this law;
4.3. General terms not defined in these provisions of the Commission's regulatory rule Nr. 02.05.2007.60 "minimum capital requirements rules" (hereinafter – MKP) and the Commission's regulatory rules 30.11.2007 No 166 "regulations of consolidated supervision rules" for the use of the term.
5. the authority shall always abide by the law in certain exposure limits, calculated in accordance with the requirements of this regulation. If, exceptionally, the exposure limits are exceeded, the authority shall forthwith inform the Commission thereof, stating the reasons for the emergence of excess and add a message to an action plan to restore compliance with the restrictions that the deadlines agreed by the Commission.
II. Constraints subject exposures 6. restriction on the Authority's risk transactions are to be considered as active roles and off-balance-sheet items reported exposures and the derivatives referred to in rule 89, MKP 90.92, and without taking into account the degree of risk or degree of adjustment, except: 6.1 risk transactions which in accordance with the requirements of the provisions of the type MKP capital reduction;
6.2. the foreign exchange risk of the purchase or sale of the transactions created, when the authority has already fulfilled its obligations, but has not yet received payment of the counterparty, and the Authority's payment last no more than two working days (starting with the third working day, such requirements constitute restrictions of the exposures);
6.3. the purchase or sale of securities risk transactions created, the authority has made a payment or delivered securities, but not yet received from the counterparty's securities or payment, and after the payment or delivery of securities last no more than five working days (starting with the sixth working day, the following requirements should be regarded as restriction of exposure);
6.4. requirements that result in customer transfer of funds, including payment, clearing and settlement services in any currency, using any offset banking or financial instruments settlement system by providing funds or nominal account holder services, in the event that the authority has received from the service provider of the customer's approval risk execution of transactions, or other requirements that a customer as a result of the exposure or making deposits into the night (overnight transactions) to another credit institution If the exposure is completed on the date of transaction, but will be completed in the next working day;
6.5. the exposures to credit institutions or investment firms, which refers to the transfer of funds, including payment, clearing and settlement services in any currency, using any offset banking, if exposure to the credit institution or investment firm that provides those services is started and completed in one business day.
7. the authority shall establish procedures that rule 6.4 and 6.5. exposure referred to in paragraph 1 as a whole, taking into account the European banking supervision Committee guidelines for the implementation of this paragraph (Implementation guidelines on article 106 (2) (a) and (c) of Directive 2006/48/EC recast).
8. From the exposure limits are fully or partially exempt the following exposures:

8.1. active items presented claims on central Governments or central banks, Member States ' regional governments or local governments if the unsecured exposures to such central Governments, central banks of the Member States, regional and local governments in accordance with the provisions of the credit risk of the MKP capital requirements standardised approach to calculate a 0 percent risk;
8.2. active items listed requirements to international development banks and international organisations, where unsecured exposures to such international development banks and international organisations in accordance with the provisions of the credit risk of the MKP capital requirements standardised approach to calculate a 0 percent risk;
8.3. active items listed requirements to the extent that they are expressly, unconditionally and directly by the Central Government, central bank, State institutions, international organizations or the international development banks, regional and local government guarantees if unsecured exposures to such central Governments, central banks, public authorities, Member States, regional and local governments, international organizations or the international development banks in accordance with the provisions of the credit risk of the MKP capital requirements standardised approach to calculate a 0 percent risk and such guarantees (guarantees) are recognised as adequate security for credit risk mitigation in accordance with the provisions of annex 3 of the MKP;
8.4. other exposures to central Governments, central banks, public authorities, international organizations or the international development banks, Member States, regional and local governments, where unsecured exposures to such central Governments, central banks, public authorities, Member States, regional and local governments, international organizations or the international development banks in accordance with the provisions of the credit risk of the MKP capital requirements standardised approach to calculate a 0 percent risk, or exposures by the Central Government, central bank, State institutions, international organizations or the international development bank guarantees and those guarantees are recognized as eligible collateral for credit risk mitigation in accordance with the provisions of annex 3 of the MKP;
8.5. exposures to institutions of the subsidiary, the parent company and other subsidiaries of the parent companies, exposures to which, in accordance with the provisions of paragraph 109 of the MKP, the Commission is authorised to apply a 0% interest level of risk;
8.6. exposures secured by the credit institution, its parent or subsidiary of the credit institution-credit institution for a certain period or term deposits located in the said certificate of deposit issued by credit institutions, or other similar financial instruments, essentially, who is in possession of the credit institution concerned in real. The remaining term of such deposit shall be equal to the remaining term or longer than that;
8.7. off-balance sheet items included in the risk business with 0 interest adjustments, referred to in the provisions of paragraph of 90.4 MKP, if the contract between the authority and the respective client or group of connected clients requires that it be fulfilled only if its result will not be exceeded exposure limits;
8.8.50 percent of their off-balance-sheet items included in the value of the exposures referred to in rule 90.3. MKP;
8.9. covered bonds (covered bonds) corresponding to the provisions of annex 2 of the MKP-1 paragraph 12 of part requirements (100-RP) percent from the value of the bonds is RP in accordance with in point 12.4. applicable risk covered bonds;
8.10.80 percent of exposures to Member States ' regional governments or local governments or exposures that provided by the Member States, regional or local government guarantees or securities, value, when such exposures in accordance with the provisions of annex 2 of the MKP-1. parts of the requirements apply to the 20 percent level of risk;
8.11. subject to authorisation by the Commission, exposures to institutions or parent companies included in the consolidation Group subsidiary companies the authority that monitoring of the consolidation at group level the Commission or another Member State, the supervisory organ or of the supervisory organ of the foreign State in a foreign country where consolidated supervision is subject to requirements equivalent to European Union Directive 2006/48/EC and 2006/49/EC;
8.12. the exposures to credit institutions that do not contribute to these credit institutions, not more than up to the end of the following working day and is not expressed in the main trading currencies. Authority to create and maintain a list of the main trading currency, based on market practice and the exchange of trade statistics;
8.13. the law guarantees requested, used when a mortgage loan which is financed by issuing mortgage mortgage, mortgage loan granted to the worker before the final recording of the mortgage in the land register, provided that this guarantee is used to reduce credit risk, calculating risk weighted assets value.
9. commitments, formed of funds with credit related debt (credit linked notes), and as a result of the emissions credits and deposits, for whom a mutual claims including that the Treaty in accordance with the provisions of annex 3 of the MKP requirements is recognised as an appropriate credit risk mitigation is equated with the provision mentioned in paragraph 8.6. exposures and exposures are exempt from the restrictions.
III. Limitations of the exposure value taking into account the provision of suitable 10. One client restriction by the exposure value is not carried out with the customer trading book and trading book exposures.
11. non-trading book exposure value shall be determined as follows:

11.1. the balance sheet asset items presented to the transactions referred to in the provisions of paragraph 89 of the MKP, – according to the carrying amount of the transaction that reduced stocks, calculated in accordance with the provisions of Commission regulations No 25.03.2009.. 42 "quality assessment of assets and savings of building regulations ' requirements, excess, all in accordance with international financial reporting standards established stocks, if such excess reduced the institution's own funds, which require minimum capital requirements;
11.2. off-balance sheet items reported to the transactions referred to in rule 90, paragraph MKP, – according to the residual value of the transaction, i.e. the value of off-balance-sheet items that reduced to create stocks, without regard to the degree of adjustment;
11.3. derivative instruments, which are referred to in the provisions of paragraph 92 of the MKP, – according to the exposure value calculated in accordance with one of the provisions of annex 1 of the MKP in part 2 of the methods provided.
12. the authority that the invoice for position risk, settlement, unpaid deliveries and counterparty credit risk capital requirements for the trading book exposures in accordance with the provisions of title II of the MKP 3, sections 1-3, part or, if authorized by the Commission using internal models that risk capital requirements for the trading book exposures the customer's value is calculated as the total of the following three values: total 12.1. all financial instruments issued by the client for long positions and short positions total total difference If it is positive. The position of each financial instrument is calculated in accordance with the provisions of title II of the MKP 3 part 1 of chapter;
12.2. the customer issued debt securities and equity securities, net position, which the Securities created during initial deployment. The initial deployment is the net position in accordance with the position of the initial deployment, reduced for securities that are already deployed or put on the market for the initial deployment of third party;
12.3. the trading portfolio risk, the settlement of unpaid supplies and exposed to credit risk of the counterparty exposure to the client or client group related to the value, calculated in accordance with the provisions of title II of the MKP 3. Chapter 2 or 3 of the part. Determining the value of such exposure in accordance with the provisions of paragraph 236 MKP, apply only to the standardised approach to credit risk.
13. If the authority in accordance with the provisions of paragraph 74 of the MKP is authorized to exclude the risk of trading book positions exposures, all authorities exposures are considered non-trading portfolio.
14. in determining the value of the exposure limits, the authority may take into account the security exposures and adjust the exposure value under this provision in paragraph 15 to 24 conditions, if such security is recognized as a suitable credit risk mitigation in accordance with the provisions of annex 3 of the MKP.
15. the Authority's exposure to a client or a part of it, which is a clear, unconditional and directly provided by third parties, be considered as a guarantee of exposure with the third party who provided the guarantee, rather than risk business with this client, if the exposure to third parties shall apply the same level of risk as the customer does not provide the desired exposure or lower, and there are all these rules : 15.1 the guarantee is recognized as a suitable credit risk mitigation in accordance with the provisions of annex 3 of the MKP.
15.2. where exposures and the guarantee is denominated in different currencies, for ensuring the exposure considered to be the value of the invoice in accordance with the provisions of the MKP 3. the conditions laid down in that annex for currency mismatch for unfunded credit protection;
15.3. the exposure and the maturity of the guarantee in the event of discrepancy, the provisions of annex 3 of the MKP provided exposure value calculation procedures in the event of discrepancy between the term;
15.4. If exposures to customers is partially secured by a third party guarantee, this part of the provided may ensure the exposure according to the provisions of the MKP 3. the conditions laid down in that annex.
16. This rule 8 and paragraph 15 of the terms of the guarantee also means in accordance with the provisions of title II of the MKP 2 part 4 of Chapter 3 and annex on appropriate recognized credit derivatives, except with the credit risk linked securities (credit linked notes).
17. the Authority's exposure to a client or a part of it, which is a clear, unconditional and directly provided by a third-party issued an appropriate financial security for its market value, replace it with exposure to this third party, not with an exposure to a client, if the exposure to third parties shall apply the same level of risk as the customer does not provide the desired exposure or lower, and the exposure and the collateral maturity matches or is longer than the term of the security risks.
18. If the authority of the credit risk mitigation is permitted to use both the financial collateral simple method, both the financial collateral extended method, it can use a third-party issued the appropriate financial security also in case of discrepancy between the period, adjusted exposure value under the provisions of the MKP provided for in annex 3 exposure value calculation procedures in the event of discrepancy between the term.
19. the authority for compliance with restrictions may reduce the exposure value provided for 50 per cent of the property value, determined in accordance with the provisions of the MKP 3.100.-the requirements of paragraph 103, such credits, which are fully secured by the land register or other Member State registered in the register of real property mortgage, if the borrower and the mortgage is one and the same individual who inhabit this real estate or lease and they comply with the provisions of annex 2 of MKP-1 in paragraph 9.3 of part requirements, as well as financial leasing transactions, if the authority retains the property rights to real estate, which the lessee to be occupied or let by the lessee until the property is not redeemed.

20. the authority for compliance with restrictions may reduce the exposure value provided for 50 per cent of registered in another Member State of the commercial real estate values determined in accordance with the laws of the Member State concerned, to the requirements of the real estate assessment of such credits, which are fully secured by the appropriate Member State in the register of registered commercial real estate mortgage, or financial leasing transactions, if a Member State regulations allow credit risk for calculating capital requirements to apply the 50 percent level of risk.
21. If a credit institution calculates the capital requirements for the evaluation of the security provisions of the MKP uses 3. financial collateral described in the extended method, the exposure limit for compliance with the exposure value can be defined as the fully adjusted exposure value (E *).
22. the authority which has received permission to use the internal ratings based approach to credit risk for calculating capital requirements and permit her to determine the default losses or the degree of correction and the ability to impact the financial collateral to the exposure value to be evaluated separately from other non-default level, subject to the provisions of annex 6 of the MKP was 58 and 59, the requirements of the consent of the Commission may be subject to the limitations of risk for the determination of the transaction value to take account of the following provisions of the MKP requirements of appropriate financial security.
23. where the authority has received this rule 22 permits referred to, however, do not use same down value of the financial collateral or in the exposure value of it, by establishing limits subject to exposure value, take into account the value of the financial collateral in accordance with the provisions of paragraph 17 and 18 or, using the financial collateral extended method.
24. the authority may not use exposure restrictions for MKP rule 3.8-11. the security referred to in paragraph 1, except those referred to in paragraph 19 of the rules of leasing transactions.
25. The Authority's exposure value takes into account collateral security or issuer analyzes partners regarding the potential concentration risk and, if necessary, take measures to reduce concentration risk. For this purpose, the authority shall at regular intervals carry out the type of collateral concentration risk stress testing, including the estimated value of the collateral sales. If the stress test results show a reduction in the value of collateral up to a value that is lower than intended to recognize this provision, paragraph 22 and 23 or the financial collateral extended method, the exposure value shall be adjusted according to the stress test results.
26. When the authority engages in client debt securities or equity securities business in the initial deployment, it shall establish and comply with the following business internal control and monitoring procedures in the period between the commitment date and the first working day of the deployment.
27. the interrelated group of clients limits the exposure value is included in the Group of all customers are subject to exposure limits. Group of related customer determined pursuant to the provisions of annex 1. In the event of a dispute related to a customer group identification, decision on customer relationship of the authority shall be adopted by the Commission.
28. the authority to open the account, credit and other risks-taking procedures ensure customers can identify interdependencies.
29. the authority receives, collects, stores and analyzes all the information available about customers, allowing it to identify customer relationships. The authority shall make all possible efforts to obtain the necessary information on its customer relationships.
30. the authority determines the threshold, from which it provides additional information and analysis for clients. Despite the fact that the authority is exploring all of their customer relationships, customer exposure amount is greater than 2 percent of the institution's own funds or the consolidation group equity, relationship to other customers reviewed at least once a year, requiring customers to the information they need, as well as analyzing publicly available information about customers.
31. the authority shall establish and regularly review the related customer grouping procedure.
IV. Large exposures the calculation of performance restrictions 32. Exposure limit performance calculated as a client or a group of related clients, which do not have the supervision of credit institutions or investment brokerage firm, the total of the exposures calculated in accordance with the provisions of paragraph 27 of 10 – requirements relative to the first level and second level of equity capital, reduced by the provisions of the MKP 343.7 paragraph positive results , total, less in accordance with the provisions of the MKP 348.1.-the provisions of paragraph 348.5 calculated the reduction in equity. The total of the exposures should not exceed 25 percent of the requirements of this paragraph in particular equity.
33. the authority respecting the position risk, settlement, unpaid deliveries and counterparty credit risk capital requirements, the Commission may permit the exposure limit in the calculation of the customer or of related customer groups total exposure attributed to this rule set out in paragraph 32 of the equity, which added to the third level of the used capital. The total of the exposures should not exceed 25 percent, except when the authority has received this rule permit referred to in paragraph 35 to exceed exposure limits included in the trading book exposures.

34. If the customer is a credit institution or an investment firm or a group of related clients, which is made up of one or more credit institutions or investment firms, then the total of the exposures to such customer subject to the provisions under this paragraph 32 or 33. the institution's capital and compared with 25 percent of the equity, or 100 million, depending on that amount is higher. If an institution's equity is less than 100 million euro, the comparisons carried out not by 100 million, but with the same limit that is not greater than the institution's own funds. Exposures to the credit institution or investment firm, or group of related customer group, which is made up of one or more credit institutions or investment firms, shall not exceed the total amount in accordance with this paragraph the limit set. An interconnected group of customers, which is made up of one or more credit institutions or investment firms, the authority in addition to calculate the other customer exposure and apply it against the total amount in accordance with the provisions of paragraph 32 or 33. the institution's capital and compared with 25 percent of the equity.
35. The authority and respect for position risk, settlement, unpaid deliveries and counterparty credit risk capital requirements, receive authorization from the Commission, may exceed the exposure limits the risk of trading portfolio transactions, if the following conditions are met: 21.8. client or group of related customer not trading book exposure, relative to the total amount in accordance with the provisions of paragraph 32 the calculated capital does not exceed the exposure limits but the surplus only accounts that are included in the trading book exposures;
35.2. the institutions in accordance with the provisions of paragraph 33 of the same specified capital amount is sufficient to cover in accordance with this provision, paragraph 37 of the additional capital requirement calculated exposure limit exceedances;
35.3. If from the moment a client or the excess over the related customer group's exposure limits, the last 10 days, such customer or customer group related to the trading book exposures total not exceeding 500 percent of the institutions, in accordance with paragraph 33 of these rules in a particular equity;
35.4. all overshoot, which persisted for more than 10 days, the total does not exceed 600% of the institution in accordance with the provisions of paragraph 33 of the fixed capital.
36. The excess referred to in paragraph 35 of these regulations, the amount is calculated as the client or customer related groups do not trade and trading portfolio exposure totals over 25 percent of the excess in accordance with paragraph 33 of these rules in a particular amount of the equity capital.
37. The capital requirement rules in paragraph 35 that excess is calculated as follows: 37.1. choose a customer or customer group of related trading portfolio exposures, starting with those which the higher rate of weighing the specific risk capital requirement, or the highest level of risk, the credit risk of the counterparty, settlement of unpaid supplies or risk capital requirements, in accordance with the provisions of title II of the MKP 3. sections 1, 2 and 3. Select the exposures that weighing risk rates or rates of the order until the total is equal to the excess of over 25 percent of the equity, the amount determined in accordance with paragraph 32 of these regulations;
37.2. If the surplus does not exist for more than 10 days, the additional capital requirement in accordance with the provisions of paragraph 37.1 requirements for selected exposures calculated as 200 percent of the business of such risk capital requirements for specific risk or credit risk of the counterparty, open the supply risk and settlement risk in total;
37.3. If you overshoot there for more than 10 days, the additional capital requirement in accordance with the provisions of paragraph 37.1 requirements for selected exposures calculated as following exposure to the specific risk capital requirements for credit risk or counterparty, open supply and settlement risk multiplied by the coefficient shown in table. The excess of total exposures for use exposure rates applicable to weighing or risk a power increase in the sequence.
Table. Exposure limit excess capital to be used in the calculation of the coefficients in the excess amount in comparison to the equity ratio to 40% 200% From 40% to 60% 300% from 60% to 80% 400% From 80% to 100% 100% to 500% of the 250% 600% over 250% 900% 38. the authority, determining the duration of exceedance must not take into account the exposures that result in exceedances of the limit positions for the time being transferred to another company , or other artificial transactions with the company or individual with which the exposure exceeding the exposure limit, if such transactions are carried out only with the purpose to reduce the excess limit of the duration of the position, reducing it to 10 days or less.
V. authority of persons associated with the exposure limit values, the determination and calculation of the performance of the authority linked 39. persons under restriction by the exposure value of all such person's exposure value amount, except for exposures to institutions, subsidiaries of the parent company and the parent company of the Authority's other subsidiary bodies, participation in the share capital of its subsidiary company in the capital and in which the institution's membership as well as exposures secured by the credit institution for a certain period of time deposits or credit institution located in the issued certificate of deposit, or other similar financial instruments, essentially, who is in possession of the credit institution's real. The remaining term of such deposit shall be equal to the remaining term or longer than that.
40. With the authority of the persons exposure value is determined in accordance with the provisions of paragraph 10-13.

41. Exposure limit performance calculated as persons associated with the institution's exposure totals to the first level and second level of equity capital, reduced by the provisions of the MKP 343.7. positive results referred to in paragraph 1, the total amount, less in accordance with the provisions of the MKP 348.1.-the provisions of paragraph 348.5 calculated the reduction in equity. With the authority of persons total exposure shall not exceed 15 per cent of the requirements of this paragraph in particular equity.
42. The Authority shall establish and approve the Authority's exposure of persons carrying out the policies and procedures that provide for the approval of these transactions and the persons responsible for the management of risk, savings and loss write-off procedures, quality monitoring and loss from exposures to persons associated with the institution, retirements, as well as the limits of the total of the exposures to the institution are related to each category of persons total 15 percent limit.
Vi. the Commission authorisation procedure 43. for this provision, the Commission referred to in paragraph 8.11 permission not to limit exposures to institutions of the subsidiary and the parent company if that company is subject to consolidated supervision, which also applied to the authority, the authority shall submit to the Commission a written application, accompanied by the last approved the parent company and the subsidiary company annual or interim balance, profit and loss statement and the exposure control and accounting policies or procedures that determine the extent of exposure control for consolidation within the group.
44. for the provisions referred to in paragraph 35 of the Commission permit the exposure limit excess trading book exposures, the authority shall submit to the Commission an application accompanied by the following documents: 44.1. limit excess and their compliance with the objectives of the Authority's strategy;
44.2. forming the excess exposures and the associated market risk management procedures and policies, as well as the position of monitoring the duration of procedures;
44.3. the information system that allows you to calculate additional capital requirements and to identify excess and register the rule referred to in paragraph 38 the exposures, description;
27.6. the overrun of the financial instruments making up the description and characteristics of counterparties, as well as exposure limits;
27.7. other additional information which the Authority considers appropriate to the Commission.
VII. Reporting procedures 45. the authority shall prepare such exposures limit execution reports: 45.1. "large exposures review" (annex 2);
45.2. "report on exposures to persons working with the institution" (annex 3).
46. the authority which has received permission to exceed exposure limits, subject to this provision, paragraph 36, in addition to preparing the following reports: 46.1. "report on the additional capital requirement of exposure limit excess" (annex 4);
46.2. "report on the exposure limit, the excess cases in the reporting period" (annex 5).
47. Exposure restriction enforcement reports numbers shown in whole 1000s of pounds or as percentage with two decimal places.
48. Large exposures in the report and accounts for the great exposure limit excess client or related groups of customers (hereinafter SSKG) identifier consists of the following: 48.1. the client or SSKG code: 48.1.1. customer – legal person code is the code of registration according to the international standard ISO 3166 ' and the name of the national area code: part 1: country codes "and the registration number of the relevant register (residents-the Republic of Latvia , non-residents-in the country concerned);
48.1.2. client – natural person's code is the code of registration according to the international standard ISO 3166 ' and the name of the national area code: part 1: country codes "and ID code or similar code that allows to identify unequivocally the person concerned (residents-the Republic of Latvia, non-residents-in the country concerned);
48.1.3. SSKG code consists of eight BIG credit institution the symbol code, such as "AIZKLV22", and the Group of the credit institution number (three digits). If the client does not belong to SSKG, the column "SSKG code" indicates the symbol of the credit institution's eight BIG code and symbols "0.00 x";
48.2. client category: 01-02-a credit institution, investment firm, 03-04-the central bank, Central Government, regional government or 05 – municipal, 06 – 07 – a private company, 08-structured products, the unidentified customer, 99 – another client;
48.3. the name of a legal person or a natural person's name.
49. The review of exposures to persons associated with the institution, the identification of related parties consist of the following: 49.1. related parties the code: 49.1.1. the related persons – legal person code is the code of registration according to the international standard ISO 3166 ' and the name of the national area code: part 1: country codes "and the registration number of the relevant register (residents-the Republic of Latvia, non-residents-in the country concerned);
49.1.2. related parties-natural persons code is the code of registration according to the international standard ISO 3166 ' and the name of the national area code: part 1: country codes "and ID code or similar code that allows to identify unequivocally the person concerned (residents-the Republic of Latvia, non-residents-in the country concerned);
30.6. the related persons of category: 01-02-institution shareholder, shareholder of the authority — physical person's spouse, parents and children, 03-member of the Council of the authority, 04 – Authority Board Member, 05-another Executive, 06-the Council, the members of the Board and managing employee's spouse, parents and children, 07 – other;
30.6. the name of a legal person or a natural person's name.

50. Large exposures in the report included large exposures, i.e. the exposures to customers, or SSKG, which exceeds 10 percent of the equity. The report presented to the client or client group related to the exposure, as well as the assets and off-balance-sheet items showing risk transactions, derivative financial instruments and indirect exposures, i.e. the customer guarantees that the authority has used other client's exposure value adjustment or other financial instruments issued by the client, which is used as a convenient collateral client exposure or parts replacement. If the exposure value adjustment is used, the report shall also show the type of credit risk mitigation (report-KM).
51. report on exposures to persons associated with the institution shall be subject to the following requirements: 51.1. the report shall include all authorities exposures to persons associated with the institution except authorities exposures to institutions or subsidiaries of the parent company, or its parent company and the subsidiary bodies of the company share capital participation, in which the institution holds a participation;
51.2. guaranties that the authority issued by the related person to another person who used them in dealings with the authorities, as the implied obligations.
52. the report on additional capital requirements in the exposure limit excess shall be included for each customer or SSKG a calculated excess capital requirement. All of the customer or the excess capital requirements SSKG totals include provisions in title II of the MKP Chapter 1, part 2 of the required minimum amount of own funds in the calculation.
53. the report on exposure limit, the excess cases during the reporting period include all customers or SSKG exposures in excess of the limit permitted in the cases in the reporting period (quarter). One customer or SSKG in the reporting period can be more than one excess, and each of them shall be entered in a separate row of the report. Thus, a single customer or SSKG can be more than one completed report line.
VIII. submission of the Report 54. Authority to individually prepare a "large exposures review", "review of exposures to persons working with the institution ', ' overview of the additional capital requirement of exposure limit excess" and "report on the exposure limit, the excess cases in the reporting period" on the State report quarterly last month last date and submitted to the Commission by a quarter following the 15th of the month. "Large exposures review" on the Authority's consolidation group, the holding company of the group for the financial consolidation and consolidation of the authority of each subgroup prepared on the State of the review on 31 March, 30 June, 30 September and 31 December and submitted to the Commission to review on 15 may, 15 august, 15 November for the following year and on 15 February.
55. the report shall be drawn up in accordance with the provisions of Commission regulations 14.10.2008 No 146 ' prepared statements electronically submit the legislative provisions ".
56. If the Commission finds that the report has been prepared in error, it will be announced in the report to the applicant. If the Commission has not indicated otherwise, corrected report shall be submitted not later than on the working day following notification of the existence of the error from the Commission.
IX. Closing questions 57. Exposures to the rules of the Member States and the MKP annex 5 national authorities referred to in the remainder of the term from one year to three years, 80 percent of whose values are exempt from the large exposures restrictions before the entry into force of these regulations, if they were concluded until 31.12.2009., an exemption is maintained until 31.12.2012.58. To ensure that 1. observance of the fundamental principles set out in the annex to each group of connected clients in determining that body shall draw up a plan of mutual obligations of the client for review, dividing customers, depending on the total amount of exposures in relation to equity. A customer with a total exposure of more than 5 percent of the institution's own funds, the association between the review, not later than until 31.01.2011. customer, where the exposure amount is greater than 2 percent of the institution's own funds, up to 31.03.2011., the rest of the customer depending on the authority, up to the size specified and agreed with the Commission.
59. If, for the first time making a connection between the customer's review in accordance with the provisions of annex 1 of the basic principles, the authority changed the composition and SSKG a new SSKG the total of the exposures, concluded until 30.09.2010., exceeds the limit of large exposures, the authority may apply to the Commission with a request to allow a certain period exceed large exposures restrictions with certain customers or SSKG. To obtain permission, the authority shall provide each client or SSKG exposures, indicating the description of the transaction, the deadlines, the amount, and 30.09.2010.31.12.2010 the last day of the month prior to submission of the request for the permit, as well as the plan limit.
60. The entry into force of the provisions by 31.12.2010 61. Void. the lost Commission. normative provisions 02.05.2007 No. 62 "exposure limit enforcement provisions".
Informative reference to European Union directives, the regulations include provisions resulting from: 1) of the European Parliament and of the Council of 14 June 2006 on the directive 2006/48/EC relating to the taking up and pursuit of the business of credit institutions (recast);
2) of the European Parliament and of the Council of 14 June 2006, Directive 2006/49/EC on the capital adequacy of investment firms and credit institutions;
3) of the European Parliament and of the Council of 16 September 2009. directive 2009/111/EC amending Directive 2006/48/EC, Directive 2006/49/EC and 2007/64/EC as regards banks affiliated to central institutions, certain own funds items, large exposures, supervisory arrangements, and crisis management.
Financial and capital market Commission (I). Krūman of annex 1 financial and capital market Commission 13.11.2010. regulatory arrangements no 313 "exposure limit enforcement regulations" of related customer group identification principles i. interrelated group of customers, based on the relationship of control

1. the Authority's customers are related, if they constitute a risk to the lending institution common because one of these clients directly or indirectly controls the other customer or customers, except where it is proved that the person, between which there is a controlling relationship, does not constitute a credit institution a common risk.
2. If two clients equal control over the formation of a third client, for example, if both the client's participation in the share capital of the third customer is 50 percent, the body formed by two interconnected groups of customers (see. 1.). In one group of related clients include client no. 1, which controls the Customer No 3, and Customer No 3, but the second-Customer No. 2, which controls the Customer No 3, and the customer 3. Authorities exposures to client 3 is included in full on the two interrelated group of customers total amount of exposure.

1. Drawing of related customer group 1: client no 1 + Customer No. 3, the total of the exposures – Ls 1 300. Interconnected group of customers: Customer No. 2 No 2 + Customer No. 3, the total of the exposures – $700.3. parent company, subsidiaries and the parent company's other subsidiaries constitutes the interrelated group of customers. The exception is the exposures to institutions or parent companies included in the consolidation Group subsidiary companies the authority that monitoring of the consolidation at group level the Commission or another Member State, the supervisory organ or of the supervisory organ of the foreign State in a foreign country where consolidated supervision is subject to requirements equivalent to European Union Directive 2006/48/EC and 2006/49/EC, if the Commission approved.
4. There is a relationship between persons to control, however there may be cases where exposures to such customers, the authority does not constitute a joint venture, for example, if the control relationship between customers when limited to a certain transitional period, or customer owned shares without voting rights, or any other restrictions in the existing control realisation. If the client itself voluntarily declare in writing their own control functions, it does not give the restriction of the credit institution the right to exclude customers from the following interrelated group of clients.
5. If the number of commercial companies or groups of companies controlled by the Central Government, exposures to which, in accordance with the provisions of the credit risk of the MKP capital requirements standardised approach to calculate a 0 percent risk, or of a member of the local government, which by law the responsibility of the Central Government for local government obligations in the event of insolvency, the following commercial companies or groups of companies are not considered to be a group of related clients. If the Central Government or the local or regional government controlled company that is the parent company of other commercial companies, each such parent company and its subsidiaries form a body of related individual client group.
II. the interrelated group of customers, based on customers ' economic relations 6. If there is no control between clients, the authority shall assess the relation between economic links. If there is an economic dependence between clients and one client financial problems pose the risk of default of customer, such other customers constitute the authority of a joint venture. The economic dependence of customers can be unilateral or bilateral. Determining the interrelated group of customers, only the idiosinkrātisk (specific) risk, i.e., the mutual relations of the customer the specific risk that is not associated with risk of geographical, sectoral or other general risks.
7. economic dependence may occur as a result of the activities of a company, for example, a client from one supplier chain, customer reliance on major customers or other major business partners. If an institution has exposures to such clients, then one of the customer's insolvency may cause other client insolvency regardless of customer geography or sector in which they operate, i.e., this client group is exposed to the risk of mutual idiosinkrātisk client due to commitments that make other independent customers of mutual group of connected clients, as one client defaults can cause other client defaults.
8. The potential of economic interdependence between the client, which results in a group of related clients, illustrates the following examples: 8.1 if the customer wholly or partially guaranteed by the Authority's exposure to another customer or in any other way provide an exposure to different customer and this guarantee or collateral is essential to guarantee or collateral that joined the case, the guarantor and the guarantor will not be able to meet their obligations then the customer and guarantor or guarantor are related;
8.2. the institutions that have the customer or owner of the commercial units, is associated with the tenant or tenants, who pay most of the rent or the rent;
8.3. the customer and the customer's products or services to a significant proportion of consumers are related;
8.4. If the receivables of the client or of a substantial part of the obligations of one's counterparty debts or obligations, the customer and the partner are related;
8.5. the cross is the supplier and manufacturer, if the goods to be supplied to the manufacturer of the replacement takes time if it is not possible at all;
8.6. the company that products or services are used by a very small circle of consumers and the possibility of finding new customers is limited, and these consumers are linked;
8.7. the interrelated are the borrower and the debtor specified in a contract (co-borrower), the borrower and spouse if the marriage contract or civil law provides for the liability of both the commitment and the amount of the debt is essential to both.
III. the interrelated group of customers, based on significant common source of funding

9. the Authority's customers can be linked, if they use a single funding sources and methods. This means that one client security problems of funding affect the second customer, since both clients use the same funding sources or related sources of funding. Depending on the source of funding means that customers can easily attract the necessary funds for financing activities to replace the financing that you need to give up, even offering higher prices for resources and other disadvantageous conditions himself.
10. Relationship between clients does not, if they use the same financial and equity markets.
11. One customer that it financed in the course of ordinary activities, not related to a single source of funding institutions because customers can refinance its activities, including by other authorities or attracting funds another way.
12. the Authority's customers, who cannot refinance their operations due to a deterioration in creditworthiness does not create a group of related clients.
13. the Group of related client detection example (see. Figure 2) 13.1. the body "A" has five customers could get the refinancing depends on authorities ' guaranteeing A "solvency/reputation and each customer's quality of the assets, financial position and reputation. The authority "(A)" consider these five customers for mutual group of connected clients.
13.2. the body "B" client no 4 and no 5 client consists of related customer group, Customer No. 3 body "B" can prove that the customer does not make it with the client no 4 and no 5 of the common customer risk. Risk is considered common if one client financial problems may lead to another customer or customers, financial problems or to all customers of financial problems at the same time. Financial problems more customers can occur at the same time, for example, in the following cases: 13.2.1. customers of one company attracts the funds 13.2.2. customers use the same investment adviser, attracting funding, 13.2.3. customer financing structure is similar, 13.2.4. refinancing activity is based on a commitment to ensure the refinancing (commitment), if they assume the same guarantor or guarantor (surety, credit transactions in structured securities, agreed on liquidity) 13.2.5. refinancing, is provided with the same base assets.
14. This provision described in paragraph 13 of the client group related discovery in the customers example no. 1, no. 2 and no. 3 and customers no 4 and 5 constitute the authority "(A)" common risk. In this example, principal assumption is that all five customers are related because all client operational problems in the case of refinancing depends on authorities ' A '. Turn body "B", which has made investments in Customer No. 3, no. 4 and no. 5 issued securities or assets (conduit), it can be shown that the only customer in the No. 4 and 5 constitute the body "B" share risks, but investment in the Customer No. 3 does not create a body "B" with customers no 4 and 5 of the joint venture because the Customer No. 3 refinancing can be easily obtained from other sources. In this case, the customers are no. 4 and no. 5 types of body "B" group of related clients, but the client no 3 with customers no 4 and no 5 of the institutions are not included in "B" group of connected clients.

Figure 2 the existence of the interrelationship between 15 common source of funding because illustrates another example: credit institution undertakes to finance or provide the opportunity to receive credit for a number of special purpose companies that make up vērtspapirizēšan, or other similar establishment (hereinafter MACHINE) and it is possible that all such liabilities will be performed at the same time so that this commitment is dependent on one source of funding. For example, the company provides liquidity for multiple MACHINE and relies only on securities issued by these MACHINES. MACHINE is not other sources of funding, and the funds are invested in long-term assets. If asset quality will deteriorate significantly, it will immediately reduce the trust of securities issued in the market and it will be impossible to issue new securities, as a result of the MACHINE would not be able to refinance their assets, but the credit institution as the main guarantor will be forced to finance their long-term assets. Thus, despite the fact that different States have taken CHINESE investments in different assets and they are legally independent persons, it is clear that such a MACHINE by the way the Group of connected clients, as they form the common risk of the credit institution. Such a risk is not industry specific risk, but the risk of the securities market. At the moment when there is no demand for securities issued by the MACHINE's activities, the amount of ability and stability limitations become obvious and trust is lost.
16. the interrelated group of customers, based on the relevant joint financing source, depends only on whether the entire client activity or major portion is funded from a single source and its ability to use any other source of funding is limited. Is not taken into account nor the customer, not a form of financing.
IV. mutual obligations of the client by using different approaches 17. customer identification, mutual obligations on the basis of the trust relationship, and the relationship between the client, on the basis of economic relations, there are two different approaches related to the client group. Authority must first evaluate the control and, if it does not exist, valued customer relationships based on economic relations. However, there are cases when clients that are included in the groups based on the trust relationships, their economic relations.
18. (see for example. 3.), the credit institution has identified two interrelated groups of customers based on a control relationship, – SSKG1 and SSKG2. In addition it is the information that this group of customers "D" and "F" are economically linked in such a way that the customer's "F" challenges to meet its obligations to the credit institution influenced their "D", but without prejudice to any other existing SSKG1 customers. In this case, the customer is not required to include SSKG1 "F", but you want to create additional interrelated group of customers, which should include SSKG3 clients "F" and "D".

3. Drawing

19. (see for example. 4. Drawing), the credit institution has identified two interrelated groups of customers based on a control relationship, – SSKG1 and SSKG2. In addition it is the information that this group of customers "A", "B", "C", "D" and "F" are economically linked in such a way that the customer's "F" challenges to meet its obligations to the credit institution affects all SSKG1 customers. In this case, the client also includes the "F" SSKG1.

4. Figure 20. If the authorities are controlled by the customer in the same owner, but between the same clients there is no relationship of control, the authority shall assess the association between the customer, taking into account not only the economic dependence of such customers, but also the owner's ability to make decisions that may create a risk of joint authority.
21. If the authorities in the consolidation company in the group manages the closed investment fund and investment management company controlled by the fund company, which receives funding from the institutions, the following companies are linked.
V. structured product issuer and the customer, where the exposure consists of the following products, mutual commitment procedure 22. If the institution investing in structured products, which include the provisions and MKP 97.13 97.15. the categories referred to in paragraph (vērtspapirizēšan of the position of securities and certificates of investment funds (hereinafter – structured product)) and which is characterised not only by the risk of structured products, but also the actual contribution of investment funds and exposure, which vērtspapirizēt (hereinafter referred to as underlying structured products), risk, then the authority determining authority related client groups assess both the structured product issuer's relation with other customers, and the customers that exposures create structured product base assets, liabilities to clients, taking into account the fact that the cross may be the client whose exposures form various structured products, as well as the underlying a structured product issuers themselves.
23. The Authority may impose one of the following approaches client whose exposures create structured product database assets or structured product issuer obligations with other customers for evaluation: 23.1. all of the underlying evaluation: the authority shall consider and keep under constant review all structured product base assets to determine whether customers whose exposures constitute the base of assets does not constitute a cohesive group of customers among themselves or with other institutions to customers;
23.2. partial evaluation: the underlying authority can assess part of the structured product base assets, of which it has sufficient information to determine the appropriate customer relationship or relationship to other institutions customers. The remaining base actively being considered at risk to an unidentified customer, and customer shall be entered in a separate related customer group that combines all the structured products do not identify clients;
23.3. unidentified (unknown exposure) customer evaluation of exposures to structured products: all the identified customers, not including the 23.2. not referred to identified customers or those customers whose exposures comprises a structured product database, which is not enough assets in the form of pellets, inserted in one interconnected group of unidentified customers. Structured products are considered sufficiently granular if its biggest base of assets is less than 5 percent of the total assets of the base;
23.4. structured product evaluation: If the authority, for example, based on the investment fund certificates emission prospectus, is convinced that customers whose exposures create structured product base of assets, are not directly or indirectly related to such authorities, customers with total exposure of more than 2 percent of the institution's own funds, the authority may consider such structured product issuers on the Authority's clients, without taking into account the customers whose risks form the basis of this structured product assets and applying restrictions to only issuers of structured products.
24. Depending on the body size and structured product information available for the clients of the risks of their base assets, the authority carrying out the customer group related detection, you can apply some of this annex referred to in paragraph 23 approaches or a combination, first assessment on the possible extension of this annex, paragraph 23.1 approach as the most conservative. If the institution chooses one of the 14.4-14.5. approaches referred to in paragraph 1, the issuer of structured products and customers that exposures create structured product base assets, mutual obligations and commitments to other institutions for determining the customers at the same time apply the exposure limits for each issuer of structured products.
25. when assessing the client, the exposure of which consists of structured products structured product issuer or a correlation with other customers, the authority shall comply with the following conditions: 25.1. If the investment fund is the underlying investment fund certificates, the granularity criterion can be applied to replace the base of assets-investment fund certificates, with their rows of base assets;
25.2. the structure of the underlying report periodically, but not less frequently than once a month;
25.3. exposures that reflected the underlying asset, the value shall be determined in proportion to the contribution of the authority outlined in the product;
25.4. where the authority has made investments in structured products before 30.09.2010., it can start to apply the new approach to structured product issuer or customer exposure which constitute a structured product database assets, mutual commitment, starting with 31.12.2011.
 
 
Annex 2 financial and capital market Commission 13.11.2010. regulatory arrangements no 313 "exposure limit enforcement regulations" must be submitted to the financial and capital market Commission four times a year in the name of the authority: code: application level (individual, group consolidation, consolidation subgroup): large exposures review. year (reporting quarter) 1. Customer and SSKG large exposures review (000) no PO box
Identification of the customer or SSKG the value of the exposure before credit risk mitigation in the form of KM in the exposure value after the KM SSKG the code for the customer in the customer code-general emergency client nosa-Kuma or name exposure value before savings accrue-you or the subject of values-tion (-)

Exposure value after the savings and value adjustments in% of equity (1.6 LRD) ** KM% of equity before the KM (not sales. portfolio) (1.3 LRD) background-laid the credit protection-protection (-) funded credit protection-protection (-)-Nekus estate mortgages (-) the exposure value after KM (13 + 17 + 18 + 19),-vojum of the exposure limits-you (-) the exposure value after relief% of equity (1.6 LRD) in% of equity (not sales. portfolio) (1.3 LRD) register-tion site code registry-tion number or personal code together (8 + 9 + 10) including total (7 + 12) including
Combined (20 + 21) including active Atv-sināt-instr-file outside the balance sheet items indirect exposures Not selling vanity book Not selling vanity book 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the Commission's regulatory rules 30.11.2007 No 165 "report on minimum capital requirements and the calculation of own funds for the preparation and submission to the legislative provisions" in the position shown in annex 1.
 
2. the annex below 2. SSKG large exposures review (000) no PO box
SSKG identifier value of exposures the customer code SSKG code client customer name or category name exposure value after the savings and value adjustments to the exposure value after the application of the exemption registration code registration number or personal ID code 1 2 3 4 5 6 7 8 authorities (signature) (name) (date of completion) performer (name) (email address) (telephone number) Annex 3 financial and capital market Commission 13.11.2010. regulatory arrangements no 313 "exposure limit enforcement regulations" must provide financial and capital market Commission four times a year-up to 15 April, 15 July, 15 October and 15 January: code name: review of exposures to persons associated with the institution. year (reporting quarter) (000) no PO box
Identification of the related party exposure value in the related category of personal code Related name or name exposure value before savings provisions or value adjustments (-) the exposure value after the savings and value adjustments (7 + 11)% of equity (1.3 LRD) register-tion code registration number or personal code together (7 + 8 + 9) including active derivative instruments off-balance sheet items indirect exposures total 1 2 3 4 5 6 7 8 9 10 11 12 13 the Commission's regulatory rules 30.11.2007. No 165 "report on minimum capital requirements and the calculation of own funds for the preparation and submission to the legislative provisions" in the position shown in annex 1.
Authorities (signature) (name) (date of completion) performer (name) (email address) (telephone number) Annex 4 financial and capital market Commission 13.11.2010. regulatory arrangements no 313 "exposure limit enforcement regulations" must be submitted to the financial and capital market Commission four times a year in the name of the authority: code: application level (individual, group consolidation, consolidation subgroup): overview of the additional capital requirement of exposure limit excess. year (reporting quarter) (000) no PO box
Identification of the customer or SSKG value of exposures and relief after KM 25% of equity (1.6 LRD) exposures in excess of the total of over 25% of equity (7-8) capital requirements limit excess SSKG the code for the customer in the registration code on the customer registration number or personal ID code on the customer or on the customer category name or SSKG name 1 2 3 4 5 6 7 8 9 10 total Commission 30.11.2007. Regulation No 165 in laws "report on minimum capital requirements and own funds calculation preparation and submission to the legislative provisions shown in the annex 1 line code.
Authorities (signature) (name) (date of completion) performer (name) (email address) (telephone number) Annex 5 financial and capital market Commission 13.11.2010. regulatory arrangements no 313 "exposure limit enforcement regulations" must be submitted to the financial and capital market Commission four times a year in the name of the authority: code: application level (individual, group consolidation, consolidation subgroup): overview of the exposure limit, the excess cases during the reporting period. year (reporting quarter) (000) no PO box
Identification of the customer or SSKG exposures of 25% of the total equity (1.6 LRD) exposures in excess of the total of over 25% of equity (7-8), t.sk.
SSKG code for the customer registration location code on the customer registration number or personal ID code on the customer or on the customer category name or SSKG name īsak or equal to 10 days longer than 10 days total 1 2 3 4 5 6 7 8 9 10 the Commission's regulatory rules 30.11.2007 No 165 "report on minimum capital requirements and the calculation of own funds for the preparation and submission to the legislative provisions" in the position shown in annex 1.
Authorities (signature) (name) (date of completion) performer (name) (email address) (telephone number)