Financial and capital market Commission, the provisions of regulations No 219 in Riga on 16 December 2015 (financial and capital market Commission Council meeting No. 50 2. p.) The legislative provisions of the action plan included in the renewal of the content of information and its submission order Issued under the official supervision of credit institutions and investment firms Act of renewal and the President of the first subparagraph of article 4 and article 5 of the sixth part i. General questions 1. "the legislative provisions of the action plan included in the renewal of the content of information and its submission agenda" (hereinafter-the rules) determines: 1.1. actions to be included in the recovery plan scenario development, minimum requirements; 1.2. activities in the recovery plan to be qualitative and quantitative indicators of minimum requirements; 1.3. the development of a recovery plan easier; 1.4. operational procedures for the submission of the recovery plan. 2. The rules are binding on the supervision of credit institutions and investment firms in the reconstruction and Relief Act, said authorities. 3. explanation of terms used in the rules: 3.1 restore measure (recovery options) – action plan for renewal of the set of actions to maintain or restore the Authority's financial position and the long-term viability of the crisis; 3.2. idiosinkrātisk meaning the event – the event that accession could lead to significant disturbances in the functioning of the authority and negatively affect the financial position of the authority and long-term viability; 3.3. possible crisis scenarios, based on reasonable assumptions model to internal or external events, adverse changes in macro-economic indicators or market conditions or set, causing interference in the activities of the authority and affect the risk inherent in the authority and financial and capital indicators; 3.4. the role of systemic event – the event that accession could lead to significant financial system and negatively affect the financial system and the economy as a whole; 3.5. other terms used in the rules comply with the prudential supervision of credit institutions and investment firms and credit institutions of law, the application of the law, the law on the financial instruments market and financial and capital market Commission (hereinafter the Commission) on March 29, 2009. the regulatory provisions no 38 ' ' capital adequacy assessment process the legislative provisions establishing the ' ' term usage. 4. the authority renewal plans of action in accordance with these rules, the delegation of the European Commission by the updating of the critical functions and main areas of activity and the associated service discovery determines the regulatory criteria and technical standards in relation to the activities to be included in the recovery plan and the minimum criteria which the supervisory organ must assess the recovery plan of activity for the purpose of valuation and other directly applicable European Union legislation. 5. the authority shall restore the plan shall contain information on: 5.1 recovery plan of action set out in qualitative and quantitative indicators, the calculation methodology and the limit values according to the following rules 1 and 2 of the annex or in free form; 5.2. the function and scope of the evaluation according to the rules of annex 3 and 4, or in free form; 5.3. the activities set out in the recovery plan possible crisis scenarios and operations impact assessment of the impact of the recovery measures and the assessment of the effectiveness of the results according to the rules in annex 5 and 6, or free-form. 6. On an operational recovery plan development, maintenance and implementation of the responsible authorities or members of the Council meeting (hereinafter referred to as the authority) and the Board. If the recovery plan development and maintenance is provided by a third party – the outsourcing provider, institutions and decision-making bodies, the Governing Board is responsible for the outsourcing of work to the same extent as on your own. 7. the budgetary authority shall determine and approve the operational recovery plan development, evaluation and maintenance guidelines and at least once a year, review and approve the contents of the recovery plan of activity. 8. The Management Board of the authority provide a restore plan, assessment and regular maintenance, in accordance with the requirements of the operational budgetary recovery plan development, evaluation and maintenance guidelines. The Management Board of the authority approved by the appropriate authorities in the internal regulations of the recovery plan of activity development, evaluation, and implementation. II. Activities to be included in the recovery plan scenario development, minimum requirements 9. possible crisis scenarios (hereinafter also – scenario) development objective is to define the hypothetical adverse event set to which the institution valued restoration plan of action contained in the renewal of the efficiency of the measures and indicators. 10. The Authority shall establish and restore plan shall include at least one scenario for each of the following event types: 10.1. systemic significance event; 10.2. idiosinkrātisk meaning the event; 10.3. the systemic importance of the event and idiosinkrātisk meaning the combination of the event when events occur simultaneously and interrelated. 11. Global systemically important institution and other significant systemic Authority activities in the recovery plan includes at least one additional scenario any of the rules referred to in paragraph 10 of the event types. 12. it is recommended that the authority to draw up scenarios in addition to the provisions of paragraphs 10 and 11 the minimum requirements laid down in order to ensure that the scenario is proportionate to the nature of the business, institution size, relationships with other institutions and the financial system as a whole, as well as with the funding model (funding model). 13. Each authority shall develop scenarios according to the following requirements: 13.1. scenario is based on events that are related to the authority and its activity is significant (most relevant), taking into account the institution's legal structure, size, business model, and financing activities (activities), reciprocal links with other institutions and the financial system as a whole and to the right of the institution risks (vulnerability), as well as other important institution and its activities targeted factors; 13.2. the scenario includes a negative impact of the events, including events with rapid and progressive development which pose may lead to institution's insolvency (failure), if one were not implemented in a timely manner operational recovery measures; 13.3. the scenario is based on exceptional (exceptional) events that accession is reliable; 13.4. in the development of the scenario uses the reverse stress testing; 13.5. the assumptions used in the scenario are described and justified. 14. the authority shall assess each scenario in the event of impact, at least on the following activities of the authority in defining elements: 14.1. own capital; 14.2. liquidity; 14.3. the risk profile; 14.4. profitability; 14.5. Financing; 14.6. financial services, including payment and settlement services; 14.7. reputation. 15. the importance of developing a systemic event scenarios, the authority shall take into account at least the following event impact on its activities, subject to the provisions of this paragraph 13:15.1. termination of transactions with significant business partners or partners of such business bankruptcy (failure) that could negatively affect the overall stability of the financial system; 15.2. the interbank loan market liquidity; 15.3. the institution of significant increase in country risk and global capital flight from the country, which is important for the operation of the authority; 15.4. adverse changes in asset prices in one or more markets; 15.5. the macroeconomic deterioration. 16. the importance of developing idiosinkrātisk event scenarios, the authority shall take into account at least the following event impact on its activities, subject to the provisions of this paragraph 13:16.1. termination of transactions with the relevant business partners or partners of such business bankruptcy (failure); 16.2. the institutions reputation deterioration; 16.3. a large outflow of deposits; 16.4. the adverse assets, which is essential to the authority, changes in the value of the investment; 16.5. the essential features of the issued loans losses; 16.6. significant operational risk injury; 10.4. possible penalties. III. Activities in the recovery plan to be qualitative and quantitative indicators of minimum requirements 17. Authorities contained in the recovery plan set of indicators: 17.1. in compliance with the authority operating model and strategy, it includes indicators are appropriate to the risk profile of the institution, as well as identify the right institution (vulnerabilities), the risks that threaten the financial position of the authority and may cause its deterioration; 17.2. comply with the size and complexity of the institution and the number of indicators contained therein are sufficient to identify a deterioration of the situation in different areas of the Authority's operation, while ensuring the transparency and governance; 17.3. identify situations in which the authority should decide on the renewal of the implementation of the measures set out in the plan; 17.4. meet the institution's internal control system, risk management framework (framework) and are in accordance with the established liquidity, capital adequacy, continuity of operations plans and internal laws; 17.5. is integrated into the institution's internal control and management information systems and the management and decision-making process; 10.9. also includes the indicators, which are focused on the future (forward-looking indicators). 18. the authority renewal plan includes this provision set out in annex 1. qualitative and quantitative indicators which meet the following groups of indicators: 18.1. capital ratios; 18.2. liquidity indicators; 18.3. the profitability indicators; 18.4. asset quality indicators; 18.5. market indicators representative of the situation; 18.6. the macro-economic indicators. 19. the authority, within their respective reasons, restore plan does not include this provision in paragraph 18.5 and 18.6 specified index groups the appropriate qualitative and quantitative indicators, if such indicators are not appropriate, in view of its commercial nature, size and complexity, risk profile, legal structure and form. 20. investment brokerage company, their respective reasons, the plan does not include this provision in paragraph 18.1-18.4 specified index groups the appropriate qualitative and quantitative indicators, if it follows the pointer are not binding or appropriate given its commercial nature, size and complexity, risk profile, legal structure and form. 21. the institution shall check the activities in the recovery plan includes this provision in annex 2 these indicators, as well as other indicators, subject to these rules, the proposed indicators. 22. the Authority describes the order in which determines the quantitative thresholds, under the principle of progresivitāt, to be able to detect early changes and predict the score threshold, as well as the effective implementation of the activities set out in the recovery plan action restoration measures, taking into account the pointer size and of exceeding the limit the period within which such changes might occur. As regards qualitative indicators authority determines the events that accession can be regarded as a threshold. 23. the body shall periodically, but not less frequently than once a year, review the actions contained in the recovery plan and the limit values. 24. The management information system ensures that the authority may make a restore plan for regular monitoring, as well as at the request of the Commission, can provide information on the activities of the recovery plan the actual values of indicators and their thresholds. 25. The Authority shall without delay inform the Commission if it decides not to implement the actions set out in the recovery plan measures for the recovery of activity in the case of the set is reached the limit, the valid basis. 26. Capital the capital performance indicators reflect the actual (actual) or potential equity or quality changes. 27. in determining capital indicators, the authority shall take into account that the performance information on equity or quality changes can make late and the implementation of measures to restore the institution's own capital or improve its quality, you may need a longer period of time, as well as their implementation may affect the market or other conditions. 28. the authority shall lay down the thresholds of indicators of capital, given its risk profile, the required time for the renewal set out in the plan of implementation of the measures and their effectiveness (recovery capacity), as well as considerations in a time period could take equity or quality changes. 29. the authority for the capital, based on the binding authority of the same capital requirements according to European Parliament and Council Regulation (EC) no 575/2013 (26 June 2013) for the prudenciālaj requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 article 92 and the law of credit institutions article 101.3 4.4. point or financial instruments market law in article 7.3 of part 139 (1) but without taking into account the total capital reserve requirements imposed under the law of credit institutions, 35.23, or 35.24 35.22 28.50 article or financial instruments market law, the limit values laid down in article 121.1 of the higher level of such requirements to ensure that it is appropriate to achieving the body, although it will continue to comply with the binding the same capital requirements in a timely manner shall decide on its course of action. 30. The liquidity ratios liquidity ratios reflect the actual or potential institutions could meet its existing and future liquidity and financing needs, including the exposures (exposure) within the Group and from the off-balance-sheet positions arise. 31. Liquidity indicators apply to both short term and long term institution's liquidity and funding needs, as well as reflect the level of dependency of the institution's funding, drawn from individuals, small and medium-sized enterprises (retail) and other counterparties (wholesale), broken down by the essential funding currencies if necessary. 32. the authority determines liquidity horizons thresholds at a level to ensure the minimum bound liquidity requirements and continually advance the risk that minimum liquidity requirements could not be met, the identification. The profitability indicators of profitability indicators 33. identify and reflect the institution's income generation-related factors that may lead to rapid deterioration of the financial situation of the institution of profit decline. 34. the profitability of the Group also include the authority to create operational risk losses that might significantly affect the profit or loss of the authority, relevant indicators, including indicators that identify staff irregularities (conduct-related issues), the possible sanctions, internal or external nature of the fraudulent activities or other adverse events. Asset quality indicators 35. asset quality indicators identified and reflect the institution's asset quality changes and where the asset quality deterioration could result in the need to take a decision on the operational implementation of recovery measures. 36. asset quality indicators also includes risks associated with off-balance sheet exposures, and profits non-performing exposure effects on total assets quality. Market situation of representative indicators 37. market situation of representative indicators reflect market participants ' projections for rapid and negative financial position of the authority changes that could cause interference in the activities of the authority, the financial and capital market. 38. the representative of the market situation in the Group include: 38.1. the equity market value-based indicators or indicators that characterize the relationship between equity and market value in the balance sheet; 38.2. the relationship-based (deb-based indicators) for financial and capital market participants ' forecasts, such as the value of credit swaps (credit default swap), the value of the debt securities or of the difference in the rate of financing (debt-spreads) based indicators; 38.3. the composition of the portfolio-based indicators, which reflect the significant assets to the authority of the change in the value of the predictions (such as real estate); 23.9. the short-and long-term credit rating changes, which can cause rapid changes in the financial and capital market participants ' forecasts concerning the financial position, the authority-based indicators. Macro-economic indicators 39. Macro-economic indicators reflects the deterioration in economic conditions impact on the activities of the authority or with the exposures and the associated concentration of risks in funding levels. 40. the macro-economic indicators are based on the factors affecting the results of the Authority's operation and is independent of a specific geographic area or areas of the business. 41. The macro-economic indicators group includes indicators relating to: 25.5. jurisdictions related to the activities of the authority, taking into account also the jurisdiction of the legal framework of the consequential legal risks; 41.2. the functioning of the authority with the essential economic sectors (for example, operations with real estate, water transport, etc.). IV. Activities to facilitate the development of the recovery plan requirements 42. Authority to this rule 7, paragraph restore plan review and approval, the scenario referred to in paragraph 10 and 18 mentioned the inclusion of activities in the recovery plan may be eligible activities in the development of a recovery plan easier, if it meets the following criteria: 42.1. the authority is not globally important systemic institution (G-BOI) or other significant systemic authority (O-SI); 26.2. the authority does not provide a critical function or with critical functions related to service. 43. The compliance action plan for renewal of the development requirements of the relieved The Commission shall determine, considering the size of the institution, association with other institutions or the financial system as a whole, the commercial nature of the activity volume and complexity (scope and complexity of activities), risk profile, the composition of the shareholders or members, legal structure and form. 44. the institution shall check the activities developed under the recovery plan if it relieved has received a communication from the Commission to the fact that the authority is appropriate actions to facilitate the development of the recovery plan. 45. The authority of the appropriate actions to facilitate the development of the recovery plan requirements: 45.1. activities in the recovery plan must include at least one scenario according to the rules specified in paragraph 10.1. event type; 45.2. the activities in the recovery plan includes binding this provision it Annex 1 indicators that meet this rule 18.1 and 18.2 of the indicators listed in point groups, and at least one indicator per 18.3 18.4 these terms and indicators referred to in groups according to the provisions specified in annex 1 for the list of indicators; 45.3. ensure that its budgetary recovery plan of action review and approve at least once every two years or after significant changes in the nature of business of the authority, size, scope or complexity, the composition of the shareholders or members, legal form or structure, risk profile, or change in the role of the authority within the financial system as a whole. V. concluding questions 46. the authority is developing a recovery plan of action according to the requirements of this regulation and for the first time shall submit to the Commission no later than 31 May 2016. Further authority each year up to December 1 shall inform the Commission of the following calendar year of the planned activities of the recovery plan of the period one month after authorities reviewed and approved by the budgetary authority renewal plan, submit it to the Commission. 47. the authority that the Commission applied the activities to facilitate the development of the recovery plan requirements, draw up a recovery plan of action according to the requirements of this regulation and for the first time shall submit to the Commission at the latest by 30 June 2016. Further body every other year until December 1 shall inform the Commission of the following calendar year of the planned activities of the recovery plan of the period one month after authorities reviewed and approved by the budgetary authority renewal plan, submit it to the Commission. Informative reference to the European banking authority guidelines rules contain provisions resulting from: 1) the European banking authority in 2014 July 18, guidelines for recovery plans to use a range of scenario EBA/GL/2014/06 (guidelines on the range of scenarios to be used in recovery plans); 2) the European banking authority of 23 July 2015 guidelines for qualitative and quantitative indicators of the recovery plan the minimum list EB/GL/2015/02 (guidelines on the minimum list of qualitativ quantitativ recovery plan and indicators). Financial and capital market Commission President k. Zakuli States annex 1 financial and capital market Commission 16.12.2015. regulatory arrangements no 219 restore plan indicators to be included in the index calculation method threshold capital indicators the basic first level capital indicator according to: European Parliament and Council Regulation (EC) no 575/2013 (26 June 2013) for the prudenciālaj requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 tier-one capital, according to the table of : European Parliament and Council Regulation (EC) no 575/2013 (26 June 2013) for the prudenciālaj requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 total capital according to the contents: European Parliament and Council Regulation (EC) no 575/2013 (26 June 2013) for the prudenciālaj requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 lever indicator according to the : European Parliament and Council Regulation (EC) no 575/2013 (26 June 2013) for the prudenciālaj requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 liquidity ratios liquidity coverage indicator (FOUND): the COMMISSION delegated Regulation (EU) 2015/61 (2014-10 October), complementary to the European Parliament and Council Regulation (EC) no 575/2013 for liquidity requirements credit institutions cover the net stable funding (NSFR) the entry into force of the relevant provisions of the indicators, calculated in accordance with the relevant European Union legislation directly applicable to requirements Of business partners (wholesale), except for private individuals and small and medium-sized enterprises, linked to the average price of the financing percentage average funding cost, separating the funding maturity and type of indicator shall be calculated in accordance with the directly applicable European Union legislation with the requirements of the appropriate liquidity horizon: financial and capital market Commission of 28 December 2009 by Regulation No. 195 "liquidity requirements the execution order and their liquidity risk management regulatory arrangements ' ' profitability return on assets (ROA) Anualizēt in the current period profit/loss ratio mean active return on equity (ROE) of reporting period Anualizēt profit/loss ratio against the average capital and reserves attributable to the operational risk loss ratio against the profit or loss attributable to the operational risk losses during the reference period and the percentage of losses against the Authority's profit or loss of the termination of transactions with significant counterparty quality indicator for asset quality indicators for income non-performing loans (gross) about the pace of change expressed as a percentage of the income of the non-performing loan value changes against the previous accounting period table of Percentage Cover the Authority's savings ratio against total income the gross non-performing loans changes in the value of the securities the securities market value changes against the previous corresponding period, the market situation of the representative indicators of the negative rating forecast of the authority or its rating decrease (rating under negative review or rating downgrade) Qualitative indicator of Credit default swap spreads (CDs) credit enforcement authorities swap rate differential compared to the sector average of the institution's capital price fluctuation of securities equity securities authorities changes in the value of the market authorities debt securities price fluctuations authorities debt securities market value changes in macro-economic indicators GDP expressed in percentage changes gross domestic product changes relative to the previous year's corresponding quarter national credit default swaps rate changes (CD) expressed as a percentage of the national CD rates changes in relation to the previous reference period for Annex 2 financial and capital market Commission 16.12.2015. regulatory arrangements no 219 transactions in addition to the recovery plan by check the items to be included in the calculation method Indicator threshold indicators Capital retained earnings and reserves/total equity authorities retained earnings and reserves, relative to the total equity of negative information on significant counterparty financial status indicator of Quality indicators of liquidity and funding liquidity source concentration (concentration of liquidity and funding sources) expressed as a percentage, a significant source of funding (customer group) concentration in relation to the total amount of funding associated with the Pointer is calculated according to the directly applicable European Union legislation with the requirements of the average from individuals , small and medium-sized enterprises and other business partners associated with the price of the financing (retail and wholesale) (cost of total funding (retail and wholesale)) expressed as a percentage of the average funding cost, separating the funding maturity and type of indicator shall be calculated in accordance with the directly applicable European Union legislation to the requirements Of its business partners (wholesale), except for private individuals and small and medium-sized enterprises, the associated funding maturity composition (average unless of wholesale funding) funding associated with the weighted average maturity rate calculated in accordance with the directly applicable European Union legislation requirements   Assets and liabilities imbalances of the maturity composition/mismatch (contractual maturity mismatch) with liquidity net liquidity position/total position, according to: financial and capital market Commission. on 28 December the regulatory rule Nr. 195 "liquidity requirements, their execution and liquidity risk management regulatory arrangements" annex 1 active according to the table of burden: Commission Regulation (EU) IMPLEMENTING 2015/79 (2014-18 December) implementing Regulation (EU) No 680/2014, establishing implementing technical standards relating to the supervisory authorities in accordance with the report of the European Parliament and of the Council Regulation (EU) no 575/2013 as for the burdens of the assets, the single data point model and the validation rules for cost and profitability income ratio (cost-income ratio) (administrative expenses + of intangible assets and depreciation of fixed assets and disposal)/(net interest income + dividend income + net commissions + financial instrument trading profit/loss + revaluation of financial instruments + other ordinary income-other ordinary expenses + value of available-for-sale financial assets impairment adjustment) Net interest income margin of Anualizēt net interest income to average asset size of major changes in the structure of the Authority's income income items (activity/income type) changes the proportion against the total amount of income in a given period of time the asset quality indicators income non-performing loans (net)/equity income non-performing loans (net) against the authorities ' equity income non-performing loans (gross)/total loans non-performing loan income (gross) relative to total loans impairment of financial assets (Growth rate of impairment on financial assets) expressed as a percentage of the financial authorities of the value of assets in relation to the previous corresponding period, significant income non-performing loans geographic or sectoral concentration percentage expressed in non-performing loans in the income ratio, loan to groups by geographical or sectoral loan home, against total loans the exposure Restrukturizēt/total exposure Restrukturizēt exposure to common exposures market situation indicators representative of the market value of Securities and the balance value (price to book ratio) the equity securities of the Authority (broken down by type, if necessary) the market value and book value for the Authority's reputation or significant damage to the reputation of the Quality score of negative information in media Quality indicator for negative Macroeconomic indicators the rating forecast or national rating reduction (rating under negative review or rating downgrade) qualitative indicators unemployment expressed as a percentage, the number of registered unemployed persons to the economically active population of annex 3 financial and capital market Commission 16.12.2015. regulatory arrangements no 219 evaluation function rollup function legal person/Department that supported the role of the systemic Function function substitution effects on third parties (if you stop function assurance) function (or function is critically important?) Yes/No (significant/non significant) justification for the substitution (replacement/irreplaceable) justification impact (significant/non significant) justification no 1 No 2 No 3 No 4 No No 5 n shall be carried out in accordance with the assessment of the European Commission delegation for the critical functions and main areas of activity and the associated service discovery criteria.     4. the annex to the financial and capital market Commission 16.12.2015. regulatory arrangements no 219 evaluation scope the scope of the compilation of the legal person/Department that supported the role of the scope of the activities of the authority, the scope of the assessment of disposal facilities for the disposal of the scope of the impact on the activities of the authority and the viability assessment the scope of assessment (can be considered a primary scope?) Yes/No (significant/non significant) reasoning ability (high/medium/low) justification impact (significant/non significant) justification no 1 No 2 No 3 No 4 No No 5 n shall be carried out in accordance with the assessment of the European Commission delegation for the critical functions and main areas of activity and the associated service discovery criteria.     5. the annex to the financial and capital market Commission 16.12.2015. regulatory arrangements no 219 of possible crisis scenarios impact scenario no novērtējums1 ___ 2 direct impact (the Group/company specific and unit) effect on the impact of equity liquidity impact on profitability impact on the risk profile of the institution's impact on the Authority's financing impact on critically important functions or with critical functions related services impact on key areas of activity impact on the reputation of the institution other major effect 1 where possible or otherwise you need to provide a quantitative assessment. 2 tables shall be completed for each scenario separately.     6. the annex to the financial and capital market Commission 16.12.2015. regulatory arrangements no 219 restore impact of measures and the efficiency rating for each of the scenārijiem1 crisis scenario no ___ 2 restore measure directly affect (the entire group/company specific and unit) effect on the impact of equity liquidity impact on profitability impact on the risk profile of the institution's impact on the Authority's financing impact on critically important functions or with critical functions related services impact on the institution's main areas of activity any other (inner/important external impact barriers activity) recovery measures for the implementation of activities for the implementation of recovery measures the time required to restore the effective implementation of the measures of the probability (high, medium, low;;) restore measure of fitness/efficiency rating (high-medium-low;;) No 1 No 2 No 3 No 4 No No 5 n 1 where possible or otherwise, you need to provide a quantitative assessment. 2 All authorities under certain transactions valued restoration measures for each scenario separately.