Operational and financial resilience covers several key aspects, including profitability resilience, credit risk management, and ensuring data quality across all processes. Considering the rapid development of financial technologies, increased attention will be given to the compliance of financial market participants with the requirements of the Digital Operational Resilience Act (DORA), as well as to the management of operational risks for crypto-asset service providers. In addition, Latvijas Banka will conduct regular capital adequacy monitoring, assessment of internal governance systems, and verification of customer asset protection mechanisms.
Business model sustainability in a transition economy is linked to increased attention to compliance with sustainability requirements and resilience to risks posed by climate change. A business model is based not only on capital adequacy but also on the ability to adapt to changing market conditions and new sustainability requirements while maintaining competitiveness and financial stability.
In the context of market conduct risk, Latvijas Banka will oversee the ratio of financial product prices and benefits, as well as their suitability for different customer groups and compliance with regulatory requirements. Special attention will be given to the availability and quality of financial information, particularly in the area of investment consulting, where accurate and timely information exchange with customers is essential. At the same time, Latvijas Banka will enhance cross-border activity supervision to ensure market transparency and promote long-term financial system stability.
By segment, the following 22 on-site inspections are planned for 2025:
- 11 inspections at credit institutions,
- 3 inspections in the insurance sector,
- 2 inspections in the area of investment,
- 2 inspections in the area of payment services,
- 3 inspections at investment firms,
- 1 inspection at the central securities depository.
In 2025, Latvijas Banka plans to carry out 9 on-site inspections in the area of prudential (safe practice and prudent risk) supervision, 12 inspections relating to the prevention of financial crime and sanctions, 3 inspections in the area of information technology, and 2 horizontal inspections. Additionally, Latvijas Banka's supervision experts will participate in the inspections conducted by the European Central Bank. Meanwhile, 1 on-site inspection will be focused on the protection of the interests of costumers serviced by credit institutions, assessing the procedures for the processing of covered deposits and guaranteed compensation.
More information on the supervision priorities for 2025–2027