Over the next three years, the priorities for the supervision of the financial market and its participants by Latvijas Banka will be the financial and operational resilience of financial market participants amid emerging risks and geoeconomic and regulatory shifts, as well as the accessibility and transparency of financial services and their alignment with customers' needs. In line with the priorities, the individual supervisory focus areas of the financial market segments for 2026 have been established, and the inspection plan for 2026 has been approved.
Santa PurgaileDeputy Governor of Latvijas Banka"Latvijas Banka has assessed opportunities to reduce the administrative burden and enhance the effectiveness of cooperation between financial market participants and the supervisor. As a result, in 2026, the scope of both on-site and off-site activities requiring the involvement of financial market participants has been significantly reduced. By implementing a risk-based approach, we focus on the key risks in each segment. This year, we will place particular emphasis on the accessibility and transparency of financial services, working together with the financial sector to also address issues related to the quality of customer service."
In 2026, Latvijas Banka plans to conduct a total of 12 on-site inspections: 4 on-site inspections in the area of prudential (safe practices and prudential risk) supervision, 2 inspections in the area of investment services, 3 inspections relating to the prevention of money laundering and sanctions violations, and 3 inspections in the area of information and communication technologies (ICT). In addition, Latvijas Banka's supervision experts will participate in several inspections conducted by the European Central Bank at significant credit institutions.
By segment, the inspections planned for 2026 are as follows: 5 inspections at credit institutions, 1 inspection in the insurance segment, 2 – in the payment services segment, 3 – at investment firms, and 1 – at a private pension fund. Alongside on-site inspections, Latvijas Banka will carry out a set of off-site activities, including 11 thematic inspections, supervisory dialogues, and several surveys.
In 2025, the loan portfolios of credit institutions, particularly of the less significant ones, grew substantially. Consequently, in 2026 Latvijas Banka will ascertain whether credit institutions uphold consistently high credit underwriting standards, maintain the appropriate quality of the new loan portfolio, and accordingly manage risks throughout the entire credit lifecycle. Additionally, Latvijas Banka will also assess the profitability of credit institutions under evolving geoeconomic conditions.
In 2026, Latvijas Banka will strengthen its supervision of insurers' claims settlement practices, with particular attention paid to process transparency, justification of refusals, adherence to deadlines, and the provision of information to customers. Claims settlement is the primary point of contact between customers and insurers and a key factor in ensuring public trust in the insurance segment.
With the growing importance of alternative investments, in 2026 Latvijas Banka will conduct a review of practices for determining the value of alternative investments, assessing the methodologies used and the associated risks to enhance investor protection and market transparency.
Supervision in the area of issuers will focus on corporate governance, data quality, and sustainability. In the investment firm segment, supervisory work will focus on managing risks, particularly the liquidity risk, and strengthening capital adequacy, enhancing internal governance and control functions, protecting customers' interests and managing conflicts of interest, ensuring the suitability and quality of financial products, and overseeing cross-border operations.
The fintech segment in Latvia continued to develop in 2025, with new licensed market participants entering the segment. It is characterised by a rapid pace of innovation and extensive use of technological solutions, including in outsourced activities within third-party ecosystems, whose shortcomings can give rise to significant operational risks. Latvijas Banka will focus on the protection of customer funds, strengthening internal governance, ensuring compliance with the requirements of the Digital Operational Resilience Act (DORA), implementing the Instant Payments Regulation, and preparing market participants for the introduction of the new payment services regulations (PSD3 and PSR).
In the area of ICT and digital operational resilience, supervisory efforts in 2026 will focus on enhancing ICT governance and outsourcing management, with particular attention paid to the effective implementation of operational resilience, business continuity, and internal control systems. These activities will support the financial sector's ability to promptly identify, manage, and mitigate ICT and security risks amid increasing geopolitical, technological, and regulatory challenges.
In 2026, as in previous years, a risk-based approach will be applied to the supervision of the prevention of money laundering and sanctions violations, with particular emphasis on assessing the management of sanctions circumvention risks. Additionally, Latvijas Banka plans to conduct a horizontal review in credit institutions and selected segments of non-bank financial institutions, focusing on the identification, assessment, and management of tax crime risks.
In the inspections conducted in 2025, Latvijas Banka paid special attention to familiarising financial market participants with the supervisor's expectations, inspection findings, and good practices identified during the supervisory process. Also in 2026, Latvijas Banka will support market participants in meeting regulatory requirements, particularly given that some of the requirements are new.