Published: 26.11.2022 Updated: 27.07.2023

Latvijas Banka has set the financial market supervision priorities, and, based on them, the financial market supervision plan for 2023 has been approved and published. It provides for 38 different on-site inspections to gain assurance about the resilience and sustainability of the financial sector as well as about the conformity of the operation of financial institutions with the requirements established in laws and regulations and the protection of the interests of the costumers serviced by these institutions.

Five financial market supervision priorities have been set for 2023: macroeconomic and geopolitical risks, operational and financial resilience, transition risks, risks related to money laundering and the financing of terrorism and proliferation (ML/FT/FP) and to sanctions and the protection of consumers of financial services.

The priorities focus on assessing the impact of Russia's war in Ukraine and on the impact the associated interest rate and inflation increase has on the changes in asset value. The resilience of the financial sector to crises will also be evaluated by analysing the management of credit risk and other risks. At the same time, transition risks and business model transformation will also be assessed.

This year, Latvijas Banka plans to carry out 9 inspections in the area of anti-money laundering and combating the financing of terrorism and proliferation (AML/CFTP) and of sanctions, 3 inspections in the area of information technologies and 26 inspections in the area of prudential supervision. Additionally, Latvijas Banka's supervision experts will participate in the inspections conducted by the European Central Bank.*

By segment, the inspections planned for 2023 are as follows: 18 inspections in banks, 1 – in the insurance sector, 1 – in the area of pensions, 4 – in the area of investment management, 4 – in the central securities depository and regulated market organiser, 4 – in the area of payment services, 3 – in investment firms and 3 – in co-operative credit unions.


* The on-site inspection plan of the European Central Bank is not publicly available therefore these inspections have not been included in the on-site inspection plan published by Latvijas Banka.