Regulation on Compiling and Submitting Statistical Data on Loan Write-Offs and Securities Price Revaluations

K. VALDEMĀRA IELA 2A, RIGA, LV-1050, LATVIA. TELEPHONE +371 67022300, E-MAIL INFO@BANK.LV, WWW.BANK.LV This translation is provided by Latvijas Banka for information purposes only. The original document is in Latvian. 12 September 2022 Regulation No 219 Riga Regulation on Compiling and Submitting the Statistical Data on Adjustments in Respect of Write-Offs/Write-Downs of Loans and Price Revaluations of Securities Issued pursuant to Paragraph two of Section 63 of the Law on Latvijas Banka
I. General Provisions

1. The Regulation establishes:
   1.1. the requirements and procedure pursuant to which a credit institution registered in
   Latvia and a Latvian branch of a credit institution registered in a foreign country (hereinafter referred to as the "reporting agent") compile and submit the statistical data on adjustments in respect of write-offs/write-downs of loans and price revaluations of securities (hereinafter referred to as the "statistical data") to Latvijas Banka;
   1.2. the deadlines for submitting the statistical data;
   1.3. the duration for storing the statistical data.

2. The terms used in the Regulation:
   2.1. adjustment in respect of write-offs/write-downs of loans – those changes in the items
   "Loans" and "Claims on MFIs, excluding Latvijas Banka" (hereinafter referred to as the "loan items") of Appendix 1 "Monthly Financial Position Report" (hereinafter referred to as the "Monthly Financial Position Report") to Latvijas Banka's regulation laying down the requirements and procedure for compiling and submitting the statistical data on the financial position of credit institutions and other monetary financial institutions (hereinafter referred to as the "MFI") (MBP) that arise from writing down the full outstanding amount of the loan (write-off) or its part from the balance sheet (write-down);
   2.2. counterpart – a book entry corresponding to the adjustment in respect of write￾offs/write-downs of loans or price revaluation of securities that is made to comply with
   the double entry accounting;
   2.3. adjustment in respect of price revaluation of securities – those changes in the items
   "Debt securities and other fixed-income securities", "Shares, investment fund shares or units and other variable-yield securities" and "Holdings in the share capital of associated and affiliated companies" of the Monthly Financial Position Report (hereinafter referred to as the "securities items") that arise from fluctuations in the market price of securities as well as from the amortisation of premium or discount, excluding those changes in the securities items that arise from exchange rate fluctuations.

3. Other terms are used within the meaning of Latvijas Banka's regulation laying down
   the requirements and procedure for compiling and submitting the statistical data on the financial position of credit institutions and other MFIs (MBP).

4. The statistical data are necessary for the performance of Latvijas Banka's tasks,
   including tasks of compiling financial statistics and the balance of payments in compliance with the requirements of legal acts of the European Union, including those of the European Central Bank, ensuring the implementation of the monetary policy of the European Central Bank, conducting financial stability analysis and informing other institutions and the general public of the development of the MFI sector in Latvia.

5. Latvijas Banka may transfer the statistical data to the institutions referred to in
   Paragraphs two and three of Section 71 of the Law on Latvijas Banka subject to the requirements stipulated therein.

6. Latvijas Banka stores the statistical data for an unlimited duration.
   II. General Requirements and Procedure for Compiling and Submitting the
   Statistical Data and the Submission Deadline

7. The reporting agent shall compile the statistical data in accordance with the Appendix
   "Report on Adjustments in Respect of Write-Offs/Write-Downs of Loans and Price Revaluations of Securities" (hereinafter referred to as the "Report") to the Regulation for the calendar month and submit them to Latvijas Banka within seven business days following the end of the respective calendar month.

8. The statistical data shall be submitted to Latvijas Banka electronically via the advanced
   security system in accordance with Latvijas Banka's regulation governing electronic information exchange with Latvijas Banka.

9. When compiling the statistical data, the adjustments in respect of write-offs/write￾downs of loans and price revaluations of securities for the respective calendar month shall
   be disclosed.

10. When compiling the statistical data, the breakdown by residents, residents of other
    euro area countries and residents of other foreign countries shall be observed.

11. When compiling the statistical data, adjustments in respect of write-offs/write-downs
    of loans and price revaluations of securities in euro, US dollars and other foreign currencies shall be disclosed separately.

12. Adjustments in respect of write-offs/write-downs of loans and price revaluations of
    securities shall be disclosed in whole euro.
    III. Requirements and Procedure for Compiling the Report

13. The reporting agent shall disclose the adjustment in respect of write-offs/write downs
    of loans at the time when the write-off/write-down takes place.

14. The write-offs/write downs with respect to syndicated loans shall be disclosed
    separately.

15. Under the loan items, the adjustments in respect of write-offs/write-downs of loans
    shall be disclosed with the minus sign and at the value at which the loan is written

off/written down the balance sheet. Where the loan has been provisioned for in the amount of 100%, the corresponding counterpart shall be disclosed with the minus sign under the item "Provisions for liabilities and charges". Where the loan has not been provisioned for in the amount of 100%, the counterpart that corresponds to the provisioned part of the loan shall be disclosed with the minus sign under the item "Provisions for liabilities and charges", and the counterpart in respect of the part of the loan not provisioned for shall be disclosed under the item "Capital and reserves".
16. The adjustment in respect of price revaluations of securities shall be calculated as the
difference between the end-of-period stocks of securities in the respective and previous calendar months minus the difference between the value of securities purchased and the value of securities disposed of within the respective calendar month. The reporting agent shall calculate the adjustment in respect of price revaluations of securities for securities that:
16.1. were held by it at the end of the previous calendar month and the end of the
respective calendar month;
16.2. were held by it at the end of the previous calendar month and were disposed of
within the respective calendar month;
16.3. were purchased within the respective calendar month;
16.4. were purchased and disposed of within the respective calendar month.
17. Where the book value of a security has increased, the adjustment in respect of price
revaluations of securities shall be a positive number, and where the book value of a security has decreased, the adjustment shall be a negative number, which is disclosed with the minus sign. The corresponding counterpart calculated as a total of all adjustments in respect of price revaluations of securities shall be disclosed under the item "Capital and reserves".
18. The adjustment in respect of price revaluations of securities denominated in foreign
currencies shall first be calculated in the respective foreign currency in compliance with the requirements under Paragraph 16 of the Regulation and then translated into euro, using the average exchange rate for each respective foreign currency; the average exchange rate shall be calculated using the foreign exchange rate applicable in accounting for the respective foreign currency at the end of each day of the respective calendar month.
19. When compiling the statistical data, adjustments shall be disclosed in the breakdown
by maturity: under the loan items, they shall be broken down by the original maturity or the period of notice of the respective financial instrument agreed upon at the beginning of the transaction, but under the item "Debt securities and other fixed-income securities" – by the original maturity. Each maturity band shall include the longest maturity, for example, the maturity band "up to 1 year" shall include a maturity of one year, but the maturity band "1–2 years" shall include a maturity of two years.
IV. Final Provisions
20. Latvijas Banka's Regulation No 134 "Regulation on Compiling the "Report on
Adjustments in Respect of Write-Offs/Write-Downs of Loans and Price Revaluations of Securities"" of 16 May 2014 (Latvijas Vēstnesis, 2014, No 102, 2018, No 92) shall be deemed invalid.
21. Latvijas Banka's Regulation No 134 "Regulation on Compiling the "Report on
Adjustments in Respect of Write-Offs/Write-Downs of Loans and Price Revaluations of

Securities"" of 16 May 2014 shall be applied to the statistical data for December 2022. The statistical data referred to in this Paragraph shall be submitted to Latvijas Banka by 10 January 2023.
22. The Regulation shall take effect on 1 January 2023.
Governor of Latvijas Banka Mārtiņš Kazāks

Appendix to
Latvijas Banka's Regulation No 219 of September 12 2022 Report on Adjustments in Respect of Write-Offs/Write-Downs of Loans and Price Revaluations of Securities _____ ________, 20 (month) Name of the reporting agent Code of the reporting agent Adjustment in respect of write-offs/write-downs of loans (in whole euro) KNK Item Item code In euro In US dollars In other foreign currencies Maturity up to 1 year 1–5 years over 5 years up to 1 year 1–5 years over 5 years up to 1 year 1–5 years over 5 years A B 01 02 03 04 05 06 07 08 09 Residents Claims on MFIs, excluding Latvijas Banka 63100 incl. syndicated loans 63101 Loans Government 64120 Non-MMF investment funds and alternative investment funds 64104 Other financial intermediaries 64105 Financial auxiliaries 64106 Captive financial institutions and money lenders 64107 Insurance corporations 64108 Pension funds 64109 Non-financial corporations 64140 Households and non-profit institutions serving households Lending for house purchase 64152 Consumer credit 64153 Other loans 64154 incl. loans to sole proprietors 64164

KNK
A B 01 02 03 04 05 06 07 08 09
Residents of other euro area countries
Claims on MFIs 63200 incl. syndicated loans 63201 Loans Government 64220 Non-MMF investment funds and alternative investment funds 64204 Other financial intermediaries 64205 Financial auxiliaries 64206 Captive financial institutions and money lenders 64207 Insurance corporations 64208 Pension funds 64209 Non-financial corporations 64240 Households and non-profit institutions serving households Lending for house purchase 64252 Consumer credit 64253 Other loans 64254 incl. loans to sole proprietors 64264 Residents of other foreign countries Claims on MFIs 63300 Loans 64300 Subtotal* 61999

• Arithmetical sum of figures in a column.

Adjustment in respect of price revaluations of securities VPK Item Item code In euro In US dollars In other foreign currencies Maturity up to 1 year 1–2 years over 2 years up to 1 year 1–2 years over 2 years up to 1 year 1–2 years over 2 years A B 01 02 03 04 05 06 07 08 09 Residents Debt securities and other fixed-income securities MFIs 75110 Central government 75121 Local government 75122 Other financial intermediaries 75105 Financial auxiliaries 75106 Captive financial institutions and money lenders 75107 Insurance corporations 75108 Pension funds 75109 Non-financial corporations 75140 Non-profit institutions serving households 75190 Residents of other euro area countries Debt securities and other fixed-income securities MFIs 75210 Central government 75221 Local government 75222 Other financial intermediaries 75205 Financial auxiliaries 75206 Captive financial institutions and money lenders 75207 Insurance corporations 75208 Pension funds 75209 Non-financial corporations 75240 Non-profit institutions serving households 75290 Residents of other foreign countries Debt securities and other fixed-income securities MFIs 75310 Government 75320 Non-MFIs, excluding government 75375 Subtotal* 75999

• Arithmetical sum of figures in a column.

VPK
Item Item code In euro In US dollars In other foreign currencies A B 01 02 03 Residents Shares, investment fund shares or units and other variable-yield securities MFIs, excluding money market funds 76110 Other financial intermediaries 76105 Financial auxiliaries 76106 Captive financial institutions and money lenders 76107 Insurance corporations 76108 Pension funds 76109 Non-financial corporations 76140 Shares or units of investment funds, other than money market funds, and alternative investment funds 76104 Money market fund shares or units 76134 Holdings in the share capital of associated and affiliated companies MFIs 77110 Other financial intermediaries 77105 Financial auxiliaries 77106 Captive financial institutions and money lenders 77107 Insurance corporations 77108 Pension funds 77109 Non-financial corporations 77140 Residents of other euro area countries Shares, investment fund shares or units and other variable-yield securities MFIs, excluding money market funds 76210 Other financial intermediaries, financial auxiliaries, captive financial institutions and money lenders, insurance corporations, pension funds, and non-financial corporations 76270 Shares or units of investment funds, other than money market funds, and alternative investment funds 76233 Money market fund shares or units 76234

VPK
A B 01 02 03
Holdings in the share capital of associated and affiliated companies MFIs 77210 Other financial intermediaries, financial auxiliaries, captive financial institutions and money lenders, insurance corporations, pension funds, and non-financial corporations 77270 Residents of other foreign countries Shares, investment fund shares or units and other variable-yield securities 76300 Holdings in the share capital of associated and affiliated companies 77300 Subtotal* 70999

• Arithmetical sum of figures in a column.
  Counterpart KPV
  Item Item code Total
  A B 01
  Provisions for liabilities and charges 88400
  Capital and reserves 89400
  Prepared by ________________________________________ Submission date __________________ (name, surname; e-mail address; telephone number) Governor of Latvijas Banka Mārtiņš Kazāks