Today the Council of Latvijas Banka passed several resolutions to implement the new statistical reporting requirements for credit institutions and other monetary financial institutions, at the same time easing the reporting burden on non-financial corporations and credit institutions.
The Council of Latvijas Banka adopted amendments to Latvijas Banka's Regulation No. 132 "Regulation for Compiling the Monthly Financial Position Report of Monetary Financial Institutions" of 16 May 2014, Latvijas Banka's Regulation No. 109 "Regulation for Compiling the "Calculation of the Reserve Base and Requirement" of 11 July 2013, and Latvijas Banka's Regulation No. 133 "Regulation for Compiling Interest Rate Reports of Monetary Financial Institutions" of 16 May 2014, as well as approved the revised "Regulation for Compiling the 'Monthly Financial Position Report'".
Said changes in the reporting requirements are made to implement the requirements of Regulation (EU) 2021/379 of the European Central Bank of 22 January 2021 on the balance sheet items of credit institutions and of the monetary financial institutions sector (recast) (ECB/2021/2), of Regulation (EU) 2021/378 of the European Central Bank of 22 January 2021 on the application of minimum reserve requirements (recast) (ECB/2021/1), as well as to incorporate the amendment made to the definition of the term "credit institution" on 27 November 2019 in Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms which will become effective on 26 June 2021 and will envisage that systemic investment firms may become credit institutions.
In addition, the Council adopted amendments to "Regulation for Compiling Interest Rate Reports of Monetary Financial Institutions" by omitting the explanation of terms already defined in "Regulation for Compiling the 'Monthly Financial Position Report'".
The amendments to the above Regulations will take effect on 26 June 2021, while the revised "Regulation for Compiling the 'Monthly Financial Position Report'' will take effect on 1 January 2022.
Today the Council of Latvijas Banka deemed invalid the "Regulation for Compiling the 'Reports on Long-Term Foreign Debt of Credit Institutions'" and adopted amendments to the "Regulation for Compiling the 'Quarterly Report on Foreign Assets and Liabilities (1-MB)'" by deleting the report "Long-Term Foreign Loans (2-MB)" and certain sections in the "Quarterly Report on Foreign Assets and Liabilities (1-MB)".
The decision was made with a view to reduce the reporting burden on non-financial corporations and credit institutions and to continue to improve the compilation of data on the balance of payments, international investment position, direct investment and external debt performed by Latvijas Banka.
The data derived from the Report on Long-Term Foreign Debt of Credit Institutions and the Report on Long-Term Foreign Loans (2-MB) of non-financial corporations were used for reporting to the World Bank in accordance with the requirements of the World Bank Debtor Reporting System Manual. Since Latvia repaid all loans to the World Bank at the end of 2020, this reporting requirement is no longer valid.
Certain sections in the quarterly report on foreign assets and liabilities (1-MB) have become redundant as new administrative data sources have become available, for example, annual report data of non-financial corporations collected by the State Revenue Service and data on controlling parent from the Eurostat EuroGroups Register.
Said changes in the reporting requirements will reduce the reporting burden on about 370 non-financial corporations and all credit institutions.
Latvijas Banka carries out several tasks significant for the functioning of the economy and financial system. One of the most important tasks is the collection, storage and processing of statistical data, as well as the development, gathering, analysis and dissemination of statistical information pursuant to the Law on Latvijas Banka. Latvijas Banka compiles monetary and financial statistics, banknote statistics, payment and payment system statistics, financial stability statistics, balance of payments and international investment position statistics, as well as gets actively involved in the compilation of statistical data at the European level.