Published: 21.12.2022 Updated: 23.05.2023

Currently applicable macroprudential measures in Latvia:

Measure Rate Effective date
Countercyclical capital buffer (CCyB) 0%

1 May 2022
(the latest decision adopted on 27 April 2021)

The need to change the previous decision is reviewed on a quarterly basis

Capital buffer for other systemically important institutions (O-SIIs) Swedbank Baltics AS – 2%
AS Citadele banka – 1.75%
AS SEB banka – 1.75%
AS Rietumu banka – 1.00%
BluOr Bank AS – 0.25%
1 January 2023
(decision adopted on 20 December 2022) Reviewed on an annual basis
Loan-to-value (LTV) ratio 90% for all loans to consumers exceeding 100 minimum wages and secured by a mortgage on real estate 12 June 2007
(law adopted on 17 May 2007)
95% for loans secured by a mortgage on real estate and state guarantee in accordance with the Law on Assistance in Solving Apartment Matters

25 September 2014
(law adopted on 18 September 2014)

70% for buy-to-let housing loans or other housing loans generating income as a result of real estate activities; moreover, only up to 70% of the expected income from the real estate are taken into account
70% for housing loans, if the borrower's income from real estate exceeds 20% of the total income
1 June 2020
(regulation adopted on 27 November 2019)
Debt service-to-income (DSTI) (the total monthly amount of debt payments to financial institutions to the borrower's monthly net income)* 40%
(the tolerance margin may not exceed 10% of the institution's newly granted loans to natural persons in a quarter)
Debt-to-income (DTI) ratio* 6 times
(the tolerance margin may not exceed 10% of the institution's newly granted loans to natural persons in a quarter)
Loan maturity limits* 30 years for housing loans, 7 years for consumer loans
(the tolerance margin may not exceed 10% of the institution's newly granted loans to natural persons in a quarter)

* Partial exemption is set – the tolerance margin may not exceed 10% of the institution's newly granted loans to natural persons on a quarterly basis.