LATVIA, COVID-19: FKTK announced it will ensure an individual and flexible approach in supervising the financial market participants

30 March 2020 — Andrei Victor
The Latvian Financial and Capital Market Commission (FKTK) announced in the light of the position expressed by the European Central Bank (ECB), the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA), ensuring the supervision of financial sector participants will implement an individual and flexible approach, based on the assessment of actual situation and the effects of COVID-19 and making use of options provided by the regulatory framework.

"An impact of COVID-19 on business is already felt, but at this stage it is very difficult to predict its real size and the effect on each country's financial sector. However, the approach taken by Europe and Latvia in applying the regulatory requirements has provided the banks with adequate capital and liquidity reserves which will serve as a safety cushion in such situations. In addition, the FKTK will ensure an individual and flexible supervisory approach for financial and capital market participants to mitigate the adverse effects of COVID-19 on the financial sector," FKTK Chairwoman Santa PURGAILE points out.

The FKTK is in close contact with the ECB, the European Banking Authority, the European Securities and Markets Authority, European Insurance and Occupational Pensions Authority (EIOPA) and The European Systemic Risk Board (ESRB), as well as other national supervisory authorities and institutions, to ensure the assessment of the situation and planning the necessary preventive or emergency measures in order to mitigate the impact of COVID-19 on the functioning of financial market participants, as the Latvian financial market authority representatives pointed out in a press release.

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