bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Wednesday 18.09.2019 | Name days: Liesma, Elita, Alita
LatviaLatvia

Saeima committee to discuss FCMC’s addition to Bank of Latvia

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RU

On Wednesday, 11 September, Saeima’s Budget and Finance Committee gave Finance Ministry time until autumn 2020 to evaluate the option of adding Finance and Capital Market Commission (FCMC) to the Bank of Latvia.

Looking at amendments to the Law on the Bank of Latvia and the term of the central bank’s governor, parliamentary deputies turned the discussion towards the idea of adding FCMC to the Bank of Latvia. According to the head of the committee Mārtiņš Bondars, this proposal was suggested as the committee’s opinion.

Bondars explained that European Union has multiple models for the governance of the financial sector. For example, sometimes the central bank performs supervision of banking services and sometimes these functions are divided among institutions.

Bondars proposed checking if a small country like Latvia, with its limited human resources, wants to maintain the existing banking supervision model or merge the supervisory institution with the central bank, as it was in 2001, when FCMC was separated from the Bank of Latvia.

Deputy Igors Pimenovs added that FCMC was formed in 2001, because this method offered a more professional supervision for the financial sector. Pimenovs wanted to know the possible benefit from adding FCMC to the bank of Latvia, aside from the argument that Latvia is too small a country. According to the deputy, it is necessary to hear out specialists as to the benefits of combining FCMC and the central bank. Deputy Vjačeslavs Dombrovskis agrees with this.

Ex-finance minister, Saeima deputy Dana Reizniece-Ozola mentioned the need to assess the usefulness of this idea. The politician is worried that the proposal to add FCMC to the Bank of Latvia is voiced in a time when the selection process to find the next head of FCMC is nearing its end. She wants to know if the people who have applied for participation in the selection process have been information of the possible changes.

Bondars said he hopes candidates watch the news and are informed of the decision made by the Saeima’s committee. He also added that in a couple of weeks the committee’s meeting may be attended by the new FCMC leader. Then that person will be informed of committee members’ intention to discuss changes for institutions supervising the country’s financial sector.

Bank of Latvia council member Arvils Sautiņš admitted at the meeting of the commission that the proposal to add FCMC to the Bank of Latvia is nothing new. At the same time, he refrained from commenting on deputies’ proposal, because the addition of FCMC to the bank is a political decision.

«If politicians decide so, we will do this. Logically speaking, if institutions were to be merged, there would be more efficient use of resources. Currently the Bank of Latvia employs around 500 people and FCMC employs 200. Should the two institutions merge, I cannot say if they could reduce the number of their employees, because there are too many unknown factors. It is clear the amount of work with FCMC will not reduce. It will likely increase instead, so there is no reason to expect less work for FCMC,» says the representative of the Bank of Latvia.

FCMC representatives confirmed to deputies of the committee that merge of the institutions could be a rational solution if the point is optimizing work performed by the two institutions.

According to Saeima’s Legal Affairs Office, there are no legal obstacles for the merge of FCMC and the Bank of Latvia, because the legislator has the right to change supervision model at any time.

Saeima’s committee asked Finance Ministry to prepare a report on the possible merge of FCMC and Bank of Latvia and detail possible legislative drafts required to perform this task by 30 June 2020. Currently it is unknown when FCMC could join the Bank of Latvia.

Discussions regarding FCMC’s addition to the Bank of Latvia were first voiced in 2010, when this proposal was mentioned by vice-governor of the Bank of Latvia Andris Ruselis at a meeting with Saeima’s Submissions Committee.

Once the chairperson of FCMC Irēna Krūmane told LETA that more than ten years ago the Bank of Latvia was the party that had initiated the idea of separating the bank’s and other market participants’ supervision from functions of the central bank. This is why the Saeima decided to create a separate and autonomous institution for this purpose – FCMC.


Leave a reply

Discussions about MPC nearly ruin Latvian government’s 2020 budget viewing

The sudden outburst of the government over the addition of the mandatory procurement component to the government’s list of topics almost caused discussions of the 2020 government budget fall through.

EU court views Ireland’s appeal against 13 billion-euro fine to Apple

The General Court of the European Union has commenced the hearing of an appeal against a decision by Brussels that Ireland has to recover 13 billion euros from the tech giant Apple for unpaid taxes.

Amid investigations, Swedbank admits shortcomings in anti-money laundering work

In Estonia and Sweden, the leading bank of the Baltics, Swedbank has admitted to investigating authorities that it has had and still has certain shortcomings in areas linked to the prevention of money laundering, according a press release.

Latvian government approves changes to improve healthcare for pregnant women

Latvia’s government has approved amendment to Cabinet of Ministers requirements to help expand screening of birth defects and establish recertification requirements for obstetricians, Healthcare Ministry reports.

FVS: catering in multiple education facilities in Sigulda was being provided illegally

Latvia’s Food and Veterinary Service found different violations of regulations during inspections performed in schools around Sigulda, as confirmed by the service.

Exclusive | Competition Council’s chief on construction cartel; society needs to see the guilty pay the price

Society needs to see the guilty pay the price. Those guilty need to step down from their posts, not go underground and wait until the storm has calmed down, BNN was told by Competition Council’s chairperson Skaidrīte Ābrama about the recently uncovered construction cartel and suspicions over involvement of high-ranking officials.

U.S. urges Lithuania not to honour people linked to Holocaust

An American Special Envoy for Holocaust Issues has called on Lithuania «to objectively review the actions of historical figures to determine the impact of their actions, both positive and negative».

Minsk stands for its nuclear rights as Lithuania warns about Astravyets’ safety

As the Belarus’ first nuclear power plant is scheduled to start operations later in 2019 despite opposition from Lithuania, the Belarusian Deputy Energy Minister has reiterated the country’s rights to produce nuclear power.

University of Latvia to organize a new procurement for House of Letters

The procurement for the House of Letters has been put on hold and the University of Latvia has decided to organize a new procurement for the building’s construction, as acting LU rector Gvido Straube told public broadcaster LNT programme 900 seconds.

Latvia’s SRS’s tax collection in eight months exceeds expectations

In the first eight months of 2019 Latvia’s State Revenue Service has collected EUR 6.446 billion for the state budget, which is 0.3% or EUR 20.899 million more than previously planned, according to published information.

Amnesty International awards teenage climate activist Thunberg

Amnesty International, which describes itself as the world’s largest human rights organisation, has given its Ambassador of Consciousness Award to Swedish schoolgirl, who has inspired the mass weekly demonstrations calling for climate-conscious policy reforms.

Citskovskis: wages in public administration should reach 80% of private sector’s

In the development of a new remuneration system in public administration, one of the goals is achieving that wages in public administration reaches 80% of the remuneration level in the private sector, said the head of Latvia’s State Chancellery Jānis Citskovskis in an interview to Latvijas Radio.

EU to discuss Brexit with UK each day, Johnson still pushing to leave on October 31

A high-level Brexit meeting has been held by the European Commission President Jean-Claude Juncker and the British Prime Minister Boris Johnson, where the officials have agreed to make meetings more frequent with October 31 as the deadline.

Investigation of intestinal infection leads FVS to vegetable processing shop in Jelgava

While investigating the cause behind the intestinal infection in Sigulda, Latvia’s Food and Veterinary Service has shut down a vegetable processing shop in Jelgava, as confirmed by the service.

Ukraine planning surge in military spending as war continues

Amid preparations for Donbas War talks in the Normandy format, Kyiv has announced a draft national budget that would include a 16%-hike in defence spending.

Latvia’s number of vacant job above EU’s average in second quarter of 2019

In Q2 2019, the number of vacant jobs in Latvia was above the average of European Union and Eurozone, which is reflected in percentage ratio between the total number of jobs – both taken and vacant.

Estonia worried West’s loosening grip on Russia could end in third intervention

Amid concessions to Russia in the OSCE and calls to invite it to the G7, Estonian Foreign Minister has spoken against the possibility of lower European Union’s principles against Russia, which could encourage Moscow to carry out third interventionist adventure.

19 children and four kindergarten employees show signs of intestinal infection

By Sunday, 15 September, symptoms of intestinal infection were found for 23 people, including 19 children and four kindergarten employees in Sigulda and its surrounding areas, as reported by Disease Prevention and Control Centre.

Number of vacant jobs in Latvia up 5 900 or 23.8%

In Q2 2019 there were 30.5 thousand job vacancies in Latvia, which is 5.9 thousand vacancies or 23.8 % more than in Q2 2018. In public sector there were 8.6 thousand and in private sector 21.9 thousand vacant jobs.

Europe’s electricity network will help increase energy exchange opportunities

After Baltic States’ joining of the European Electricity Network, there will be an increase for opportunities in energy exchange and trade, says AS Augstsprieguma tīkls board member Varis Boks.

Tartu retail battle: Maxima objects being shoulder to shoulder with Lidl

In the city of Tartu, Lithuanian grocery retail chain Maxima is not satisfied with the local zoning plan that could see the first shop of its low-price competitor Lidl be opened close to its property.

Unemployment benefits in Latvia to be paid for eight, not nine months

From now on unemployment benefits in Latvia will be paid for eight, not nine months. The total amount is cut, thereby allowing Welfare Ministry to save EUR 12 million, said minister Ramona Petraviča in an interview to LTV programme Rīta panorama.

Transport pollution: Paris planning 500 subsidy to e-bike purchase to millions

As France aims to reduce its air pollution, greater Paris is considering a massive subsidy programme to millions of its inhabitants to the purchase of an electric bike.

Polluted areas in Riga disappear from registers; builders often relieved of clean-up

Polluted territories in Riga have a tendency to disappear from registers of such territories. Often this results in builders being relieved of the responsibility of construction restrictions and the duty to clean polluted territories, as reported by public broadcaster TV3 programme Nekā Personīga.

EU: Progress in Brexit talks not «huge» as PM Johnson says it is

«Huge progress» – these words were used by British Prime Minister Boris Johnson to describe the state of Brexit talks before he travels to Brussels hoping to overcome the Irish backstop problem. European Commission however is yet to receive alternative proposals to speak of.

Newest comments