Amendments to the Regulation for the Credit Register

Published: 20.01.2020

Today, the Council of Latvijas Banka approved amendments to the Regulation for the Credit Register to harmonise it with the new Regulation for Granting Study Loans and Student Loans, as well as to commence the implementation of the recommendation of the European Systemic Risk Board (ESRB) and continue the provision of data to AnaCredit, Eurosystem's analytical credit dataset, based on the harmonised statistical reporting requirements of the European Central Bank.

Amendments to the Regulation for the Credit Register have been approved to facilitate cooperation among credit institutions, VAS Attīstības finanšu institūcija Altum and the Republic of Latvia Ministry of Education and Science in implementing the new Regulation for Granting Study Loans and Student Loans. The Code list of the types of the customer's obligations provided in the Regulation for the Credit Register has been supplemented with obligation types "Study loan" and "Student loan" (state-guaranteed loans), and a new purpose "Education" has been introduced. Moreover, the exchange of information between Credit Register participants and VAS Attīstības finanšu institūcija Altum, the institution implementing the state support programme for study and student loans, has been enhanced and improved.

To begin the implementation of the requirements of the ESRB recommendation of 31 October 2016 on closing real estate data gaps (ESRB/2016/14), the Code list of the purpose of the customer's obligations provided in the Regulation for the Credit Register has been substantially expanded to include new detailed types of purpose associated with real estate.

The Regulation for the Credit Register has also been amended to harmonise the contents of individual sets of data provided by Latvijas Banka under AnaCredit.

The preparatory period for the commencement of data reporting to the Credit Register has been extended for new Credit Register participants, and the reporting process itself has been simplified.

The amendments will take effect on 1 April 2020.

The Credit Register is a national information system managed by Latvijas Banka. In the Credit Register, Latvijas Banka collects, accumulates and stores the data of the Credit Register participants and restricted Credit Register participants on their customers and customer guarantors, obligations of the customers and customer guarantors and the performance thereof. For more details on the Credit Register, please see https://www.bank.lv/en/tasks/credit-register/about-credit-register.

About Latvijas Banka

Latvijas Banka, acting in the public and economic interest, carries out several tasks significant for each and every inhabitant, financial markets and the public at large:

– participates in the formulation and implementation of the euro area's monetary policy;
– issues cash in Latvia and participates in ensuring the cash circulation process in the euro area;
– discharges the function of the central national currency authentication centre;
– maintains the interbank payment systems' infrastructure and promotes their smooth operation;
– manages the foreign reserves and other financial investments;
– acts as the financial agent of Latvia's government and provides financial services to other market participants;
– compiles and publishes financial, monetary and balance of payments statistics;
– maintains and develops the Credit Register;
– acts as an advisor to the Parliament and Cabinet of Ministers of the Republic of Latvia on monetary policy issues and other issues related to Latvijas Banka's operation.

Latvijas Banka promotes analysis and research of macroeconomic and financial issues, thereby laying a secure foundation for professional activities in these areas. The role of the leading industry expert helps Latvijas Banka raise public awareness of the development of the economy and the monetary system, the current situation and the economic policy being pursued. Latvijas Banka takes an active part in educating the general public on various economic topics.

Latvijas Banka organises and maintains the payment infrastructure in Latvia. TARGET2-Latvija is an interbank euro payment system, a component of the Trans-European Automated Real-time Gross Settlement Express Transfer System TARGET2. The Electronic Clearing System of Latvijas Banka (EKS) is used for handling retail payments.

As a further step in the development of the payment infrastructure, an instant payment service was introduced in the EKS at the end of August 2017, providing a significant stimulus for development of innovative payment instruments in Latvia, and instant payments have already become a standard form of interbank payments.

Latvijas Banka also offers an additional service for development of innovative payments, i.e. the Proxy Registry "Instant Links". The Registry users – credit institutions – may offer their customers an option to make payments by using the mobile phone number of the payee only. AS Citadele banka was the first to offer this option in August 2019, with Coop Pank and Swedbank AS joining the Registry at the end of 2019 and the beginning of 2020. It is expected that the Registry will soon be widely used by other banks in Latvia and Estonia. Thus, instant interbank payments between accounts at different credit institutions by means of a mobile phone number will be even more convenient and available to a wide range of customers across the Baltic States.