Regulatory Alerts2024-06-03
Procedure for the Calculation of the Maximum Distributable Amount
Latvijas Banka issued Regulation No 249 to establish the calculation procedure for the maximum distributable amount for credit institutions and investment firms failing to meet combined buffer or leverage ratio buffer requirements. The regulation defines the base sum of profits and specifies calculation factors based on unused capital quartiles, ranging from 0 to 0.6, to determine the allowable distribution. This regulation invalidates previous Financial and Capital Market Commission regulations on the same topic and implements provisions from EU Directive 2019/878.
Share