Rules on the Calculation of Indicators Characterizing the Activities of Credit Unions and the Preparation of Reports

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Latvijas Banka Rules No. 411 Riga 2026 January 26

Rules on the Calculation of Indicators Characterizing the Activities of Credit Unions and the Preparation of Reports

Issued in accordance with the second and thirteenth parts of Article 20, and paragraph 1.1 of Article 24 of the Credit Unions Act, and the second part of Article 63 and the third part of Article 68 of the Latvijas Banka Act

I. General Provisions

1. These Rules establish:
   1.1. the procedure for calculating indicators of requirements regulating the activities of credit unions registered in the Republic of Latvia (hereinafter – credit union);
   1.2. the liquidity requirements of a credit union;
   1.3. the requirements and procedure according to which a credit union prepares and submits to Latvijas Banka:
   1.3.1. reports containing statistical data and information necessary for the supervision of credit unions that is not statistical data (hereinafter together – data) on the compliance of a credit union with requirements regulating its activities;
   1.3.2. information necessary for supervision in case of non-compliance by a credit union with requirements regulating its activities;
   1.4. deadlines for submitting data included in reports;
   1.5. the retention period for data included in reports.

2. The data included in reports are necessary for the performance of Latvijas Banka's tasks, including to conduct supervision of the financial market and the activities of its participants, prepare supervisory statistics, and inform other institutions and the public about the activities of credit unions in Latvia.

3. Latvijas Banka stores the data included in reports permanently, except for the data included in the "Report on Large Risk Exposures" and the "Report on Loans Granted to Persons Associated with a Credit Union".

II. General Requirements for Report Preparation and Submission Procedure

4. A credit union prepares the following reports:
   4.1. report "Calculation of Compliance with Capital Adequacy Indicator and Capital Conservation Requirements and Other Information" (Appendix 1);
   4.2. "Report on the Maturity Structure of Assets and Liabilities" (Appendix 2);
   4.3. "Report on Large Risk Exposures" (Appendix 3);
   4.4. "Report on Loans Granted to Persons Associated with a Credit Union" (Appendix 4);
   4.5. "Report on Open Foreign Currency Positions" (Appendix 5).

5. A credit union prepares the reports mentioned in point 4 of these Rules once per quarter for the last date of the calendar quarter of the reporting quarter (hereinafter – reporting quarter) and submits them to Latvijas Banka electronically by the 15th day of the month following the reporting quarter, using the electronic reporting system (address: https://stat.bank.lv), in accordance with Latvijas Banka rules regulating electronic information exchange with Latvijas Banka.

6. In the reports mentioned in point 4 of these Rules, amounts in euros are shown as whole numbers, amounts in foreign currency are shown as decimal numbers with two decimal places, and percentage values are shown as decimal numbers with four decimal places.

7. If Latvijas Banka finds that the reports submitted by a credit union are prepared incorrectly, Latvijas Banka notifies the preparer of the report. If Latvijas Banka has not specified another deadline, the corrected report must be submitted no later than the next working day after receiving the notification of the error from Latvijas Banka.

III. Procedure for Calculating Compliance with Capital Adequacy Indicator and Capital Conservation Requirements and Requirements and Procedure for Preparing the Report "Calculation of Compliance with Capital Adequacy Indicator and Capital Conservation Requirements and Other Information"

8. A credit union calculates compliance with the capital adequacy requirements set out in the first part of Article 20 of the Credit Unions Act (hereinafter – the Act) in accordance with Appendix 1 of these Rules. In the calculation of the capital adequacy indicator, when determining the total sum of assets and off-balance sheet items, deposits may be taken into account which members of the credit union have pledged to the credit union on the basis of a contract, for which an entry has been made in the appropriate register, to obtain a loan, guarantee, or other similar obligation act in the credit union, and which serve as a source of debt repayment for the credit union in the event that the borrower is unable to ensure the repayment of such debt (hereinafter – pledged deposits), observing the requirements set out in sub-point 11.3 of these Rules.

9. A credit union that provides lending services to the persons mentioned in points 2 and 3 of the fifth part of Article 5 of the Act (hereinafter – commercial companies and cooperative societies) calculates the capital conservation requirement set out in the fifteenth part of Article 20 of the Act and its compliance in accordance with Appendix 1 of these Rules. In the calculation of the capital conservation requirement, pledged deposits may be taken into account, observing the requirements set out in sub-point 11.6.3 of these Rules.

10. A credit union includes in the report "Calculation of Compliance with Capital Adequacy Indicator and Capital Conservation Requirements and Other Information" the calculated capital adequacy indicator, the calculation of compliance with the capital conservation requirement, information on the number of members and shares, and information on the financing of the credit union's share capital from its granted loan funds in accordance with Appendix 1 of these Rules.

11. A credit union prepares the report "Calculation of Compliance with Capital Adequacy Indicator and Capital Conservation Requirements and Other Information" observing the following requirements:
    11.1. the position "Assets (reduced by reserves), in whole euros" (position code 010) corresponds to the balance sheet item "total assets" indicated in Latvijas Banka rules establishing the preparation of annual reports of credit unions;
    11.2. the position "Off-balance sheet items (reduced by reserves), in whole euros" (position code 020) corresponds to the off-balance sheet items indicated in Latvijas Banka rules establishing the preparation of annual reports of credit unions;
    11.3. the position "Pledged deposits (adequate collateral for loans and off-balance sheet items), in whole euros" (position code 040) is filled in by a credit union that takes pledged deposits into account in the calculation of the capital adequacy indicator, and it is calculated and filled in as follows:
    11.3.1. if the loan balance with accrued interest or the value of a guarantee or other similar obligation act is equal to or exceeds the balance of the respective pledged deposit, the balance of the pledged deposit is shown;
    11.3.2. if the loan balance with accrued interest or the value of a guarantee or other similar obligation act does not exceed the balance of the respective pledged deposit, the balance of the asset with accrued interest is shown;
    11.4. the position "Own capital, in whole euros" (position code 030) shows own capital:
    11.4.1. in accordance with the first part of Article 14 of the Act, if the credit union does not provide lending services to commercial companies and cooperative societies;
    11.4.2. in accordance with the second part of Article 14 of the Act, if the credit union provides lending services to commercial companies and cooperative societies;
    11.5. the position "Own capital, in whole euros; including paid-up share capital" (position code 031) is shown in accordance with paragraph 1.5 of Article 15 of the Act and this position is filled in only by a credit union that provides lending services to commercial companies and cooperative societies;
    11.6. information on compliance with the capital conservation requirement (position codes 310, 320, 330, and 340) is indicated in the report only by a credit union that provides lending services to commercial companies and cooperative societies, observing that:
    11.6.1. the volume of risk exposures is assessed in accordance with the requirements of point 18 of these Rules;
    11.6.2. the position "Total sum of risk exposures with commercial companies and cooperative societies, in whole euros" (position code 310) shows the total volume of risk exposures of the credit union with commercial companies and cooperative societies;
    11.6.3. the position "Pledged deposits (adequate collateral for risk exposures with commercial companies and cooperative societies), in whole euros" (position code 320) is filled in by a credit union that takes pledged deposits into account in the calculation of the capital conservation requirement, and it is calculated and filled in as follows:
    11.6.3.1. if the volume of a risk exposure with a commercial company or cooperative society is equal to or exceeds the balance of the respective pledged deposit, the balance of the pledged deposit is shown;
    11.6.3.2. if the volume of a risk exposure with a commercial company or cooperative society does not exceed the balance of the respective pledged deposit, the volume of such risk exposure is shown;
    11.7. information on the number of members and shares included in the share capital is indicated in the report as follows:
    11.7.1. the position "Number of members" (position code 210) shows the number of members in member status in accordance with the data of the credit union's member register;
    11.7.2. the position "Total nominal value of shares for which a request for disposal has been submitted, in whole euros" (position code 220):
    11.7.2.1. shows the total nominal value of shares of those members who have submitted a request to the credit union for the disposal of shares in the event of the member's withdrawal from the credit union, but who have not been excluded from the member register by the last date of the reporting quarter;
    11.7.2.2. if, in accordance with the statutes of the credit union, its members may have a different number of shares, it shows the total nominal value of shares that a member wishes to dispose of to the credit union without withdrawing from the credit union, but by the last date of the reporting quarter, the reduction of share capital by deleting shares has not yet been carried out;
    11.7.2.3. it does not show members' shares that they dispose of to another member of the credit union;
    11.8. information on the financing of the credit union's share capital from its granted loan funds (position codes 410 and 420) is indicated in the report by a credit union that has granted loans mentioned in paragraph 1.3 of Article 15 of the Act, observing that:
    11.8.1. the position "Total share capital financed from granted loan funds, in whole euros" (position code 410) shows the total volume of share capital of the credit union financed from its granted loan funds in accordance with paragraphs 1.3 and 1.4 of Article 15 of the Act;
    11.8.2. information on the financing of the credit union's share capital from its granted loan funds is indicated in the report until the respective loan is fully repaid.

IV. Liquidity Requirements and Requirements and Procedure for Preparing the "Report on the Maturity Structure of Assets and Liabilities"

12. To ensure liquidity, a credit union observes the following requirements:
    12.1. regularly assesses and plans the maturity structure of assets and liabilities, calculating the net liquidity position in accordance with sub-point 14.3 of these Rules and the total liquidity position in accordance with sub-point 14.4 of these Rules;
    12.2. sets limits for the total liquidity position as a certain percentage of the total sum of assets for at least the time intervals up to 30 days and up to 90 days;
    12.3. sets an action plan for the possible non-compliance with the limits for the total liquidity position mentioned in sub-point 12.2 of these Rules.

13. A credit union shows assets, liabilities, and transactions included in off-balance sheet items in the "Report on the Maturity Structure of Assets and Liabilities" divided into time intervals in accordance with Appendix 2 of these Rules.

14. A credit union shows the information mentioned in point 13 of these Rules in the "Report on the Maturity Structure of Assets and Liabilities" observing the following requirements:
    14.1. assets, liabilities, and transactions included in off-balance sheet items are assessed in accordance with the requirements established in Latvijas Banka rules establishing the preparation of annual reports of credit unions;
    14.2. the position "Off-balance sheet items" (position code 270) shows transactions included in off-balance sheet items, except those secured by pledged deposits;
    14.3. the position "Net liquidity position (100–200)" (position code 300) shows the difference between the total sum of assets and the total sum of liabilities and transactions included in off-balance sheet items in each time interval;
    14.4. the position "Total liquidity position" (position code 400) shows the cumulative net liquidity position, obtained by sequentially summing the net liquidity position of the respective time interval with the net liquidity positions of all previous time intervals in ascending order of time intervals.

15. To show information divided into time intervals in the "Report on the Maturity Structure of Assets and Liabilities" in accordance with point 13 of these Rules, a credit union observes the following requirements:
    15.1. assets, liabilities, and transactions included in off-balance sheet items are shown in accordance with the remaining term:
    15.1.1. assets are shown in Part 1 "Maturity Structure of Assets" of the "Report on the Maturity Structure of Assets and Liabilities" and grouped in accordance with the remaining repayment or sale term, which is determined in accordance with the repayment or sale terms provided for in the current contract, the maturity dates of securities, or accepted notifications of early repayment of funds;
    15.1.2. liabilities and transactions included in off-balance sheet items are shown in Part 2 "Maturity Structure of Liabilities and Transactions Included in Off-Balance Sheet Items" of the "Report on the Maturity Structure of Assets and Liabilities" and grouped in accordance with the remaining performance term, which is determined in accordance with the performance terms set out in the current contract or accepted applications for early receipt of funds;
    15.2. if the repayment or sale term for assets is not determined, they are considered as termless investments and shown in the column "from 361 days" (column code 080);
    15.3. assets or their part with repayment delay are shown:
    15.3.1. in the column "On demand" (column code 020), if the repayment delay does not exceed 14 days;
    15.3.2. in the column "Overdue assets" (column code 090), if the repayment delay is longer than 14 days;
    15.4. assets or their part that encumbers the fulfillment of the credit union's obligations, including assets involved in repo transactions, are shown in the column "Pledged assets" (column code 100) of Part 1 "Maturity Structure of Assets" of the "Report on the Maturity Structure of Assets and Liabilities". Liabilities, the fulfillment of which is secured by the pledge of these assets, are shown in the column "Loan against asset pledge" (column code 090) of Part 2 "Maturity Structure of Liabilities and Transactions Included in Off-Balance Sheet Items" of the "Report on the Maturity Structure of Assets and Liabilities";
    15.5. pledged deposits are shown in the respective time interval in accordance with the remaining pledge term;
    15.6. liabilities with an undefined performance term and the obligation to perform them upon demand, as well as liabilities for deposits whose repayment term has arrived but the member of the credit union has not requested the deposit, are shown in the column "On demand" (column code 020).

V. Procedure for Calculating Indicators Related to Restrictions on Large Risk Exposures and Requirements and Procedure for Preparing the "Report on Large Risk Exposures"

16. Compliance with the restriction on large risk exposures set out in the eighth part of Article 20 of the Act is calculated as the ratio of the total sum of all large risk exposures of the credit union to the own capital of the credit union. Compliance with the restriction set out in the fourteenth part of Article 20 of the Act, which applies to large risk exposures with commercial companies and cooperative societies, is calculated as the ratio of the total sum of all large risk exposures of the credit union with commercial companies and cooperative societies to the own capital of the credit union. The total sum of large risk exposures is calculated in accordance with the requirements set out in points 18, 19, and 21 of these Rules. A credit union may take pledged deposits into account in the calculation of compliance with the restrictions mentioned in this point, observing the requirements set out in sub-point 22.8 of these Rules.

17. Compliance with the restriction on large risk exposures set out in the ninth part of Article 20 of the Act is calculated as the ratio of the total sum of loans granted to the total risk group or to a member who is not included in the total risk group (hereinafter also – individual member) to the own capital of the credit union. A credit union may take pledged deposits into account in the calculation of compliance with the restriction mentioned in this point, observing the requirements set out in sub-point 22.9 of these Rules. The volume of loans is calculated in accordance with the loan assessment requirements set out in point 18 of these Rules and the requirements set out in points 20 and 21 of these Rules.

18. A credit union assesses the volume of risk exposures made with one member as the total sum of loans granted to the respective member (including the debit balance of the settlement account and financial leasing), other claims, guarantees, or other off-balance sheet obligations. The volume of a risk exposure (including a loan) is increased by accrued interest and adjusted for other payments provided for in the contract. If a credit union has created reserves for doubtful debts, the value of the transaction is reduced by the amount of the created reserve.

19. The volume of risk exposures of the total risk group is calculated as the total sum of risk exposures made by all members included in the total risk group.

20. The volume of loans of the total risk group is calculated as the total sum of loans of all members included in the total risk group.

21. A credit union includes two or more members in one total risk group in accordance with the procedure developed by the credit union for identifying total risk groups, as well as observing the basic principles of identifying control relationships and economic dependence established in Latvijas Banka rules on credit risk management of credit unions.

22. A credit union prepares the "Large Risk Exposures Report" in accordance with Appendix 3 of these Rules, observing the following requirements:

22.1. In the column "Identifier of an individual member or total risk group" (column code 020), indicate:

22.1.1. the identifier of an individual member of the credit union, assigning a unique identifier (without a dot) to each member, for example, a personal code or a member number automatically assigned by the credit union's information system;

22.1.2. the identifier of a total risk group, assigning a unique identifier (without a dot) to each total risk group, for example, a personal code or a member number automatically assigned by the credit union's information system to the person whom the credit union considers to be the most significant in the respective total risk group. The total risk group identifier specified in this subpoint shall be indicated for each member included in the respective total risk group;

22.2. The initially assigned identifiers of individual members of the credit union and total risk groups shall not be changed and shall be used in the preparation of subsequent "Large Risk Exposures Reports";

22.3. In the column "Type of member (individual member or group)" (column code 030), indicate the value "individual member" if the member is not included in a total risk group, or the value "group" if the member is included in a total risk group;

22.4. In the column group "Information on an individual member or a member included in a total risk group", provide information on each individual member of the credit union or a member included in a total risk group separately:

22.4.1. In the column "Personal code or registration number" (column code 110), for a natural person, indicate the personal code or a similar code that allows unambiguous identification of the respective natural person, or for a legal person, indicate the registration number in the public register;

22.4.2. In the column "First name and surname or name" (column code 120), indicate the first name and surname of a natural person or the name of a legal person;

22.4.3. In the column "Country code" (column code 130), indicate the code of the place of registration of a natural person or a legal person in accordance with the international standard ISO 3166 "Codes for the representation of names of countries and their subdivisions";

22.4.4. In the column "Commercial company or cooperative society" (column code 140), indicate the value "yes" if the member of the credit union is a person who is a commercial company or cooperative society, or the value "no" if the member of the credit union is a person who is not a commercial company or cooperative society;

22.5. In the column group "Risk exposures, in whole euros", provide information on risk exposures with each individual member of the credit union or a member included in a total risk group separately:

22.5.1. In the column "Loans to members" (column code 210), indicate loans issued by the credit union to an individual member of the credit union or a member included in a total risk group, without reducing the loan value by provisions, if the credit union has established provisions for doubtful debts;

22.5.2. In the column "Guarantees and other off-balance sheet liabilities" (column code 220), indicate all transactions in which the credit union guarantees the performance of a member's obligations (for example, guarantees, sureties), and other off-balance sheet liabilities to an individual member of the credit union or a member included in a total risk group (for example, obligations to issue loans), without reducing the loan value by provisions, if the credit union has established provisions for doubtful debts;

22.5.3. In the column "Other transactions" (column code 230), indicate other claims arising from transactions with an individual member of the credit union or a member included in a total risk group, without reducing the loan value by provisions, if the credit union has established provisions for doubtful debts;

22.6. In the column group "Provisions for risk exposures, in whole euros" (column code 310), indicate the amount of established provisions, if the credit union has established provisions for the respective risk exposures with an individual member of the credit union or a member included in a total risk group;

22.7. In the column "Provisions for risk exposures, in whole euros; including in the column 'Loans to members' (210) indicated loans" (column code 311), indicate the amount of established provisions, if the credit union has established provisions for the respective loans issued to an individual member of the credit union or a member included in a total risk group;

22.8. The column "Pledged deposits (eligible collateral for risk exposures), in whole euros" (column code 410) shall be completed by a credit union that takes pledged deposits into account in the calculation of compliance with the limitation specified in point 16 of these Rules, and it shall be calculated and completed as follows:

22.8.1. if the balance of the risk exposure is equal to or exceeds the balance of the respective pledged deposit, indicate the balance of the pledged deposit;

22.8.2. if the balance of the risk exposure does not exceed the balance of the respective pledged deposit, indicate the balance of the risk exposure with accrued interest;

22.9. The column "Pledged deposits (eligible collateral for risk exposures), in whole euros; including in the column 'Loans to members' (210) indicated loans" (column code 411) shall be completed by a credit union that takes pledged deposits into account in the calculation of compliance with the limitation specified in point 17 of these Rules, and it shall be calculated and completed as follows:

22.9.1. if the balance of the loan with accrued interest is equal to or exceeds the balance of the respective pledged deposit, indicate the balance of the pledged deposit;

22.9.2. if the balance of the loan with accrued interest does not exceed the balance of the respective pledged deposit, indicate the balance of the loan with accrued interest.

VI. Procedure for calculating the compliance with the limitation on the amount of loans to persons related to a credit union and requirements and procedure for preparing the "Report on Loans Issued to Persons Related to a Credit Union"

23. Persons related to a credit union are persons specified in the tenth part of Article 20 of the Law (hereinafter – persons related to a credit union).

24. The compliance with the limitation on the amount of loans issued to persons related to a credit union shall be calculated as follows:

24.1. calculate the ratio of the total amount of loans issued to each individual member of the board of directors, management board, or audit commission of the credit union and persons related to them specified in the tenth part of Article 20 of the Law (hereinafter together – a group of persons mutually related to a credit union) to the credit union's own capital;

24.2. if in the reporting quarter there is a separate person related to a credit union to whom a loan has been issued, calculate the ratio of the total amount of loans issued to such a person related to a credit union to the credit union's own capital;

24.3. the amount of loans issued to a person related to a credit union shall be calculated in accordance with the loan valuation requirements specified in point 18 of these Rules;

24.4. a credit union may take pledged deposits into account in the calculation of compliance with this limitation, observing the requirements specified in subpoint 25.7 of these Rules.

25. A credit union prepares the "Report on Loans Issued to Persons Related to a Credit Union" in accordance with Appendix 4 of these Rules, observing the following requirements:

25.1. In the column "Identifier of a group of persons mutually related to a credit union or a person related to a credit union" (column code 020), indicate a unique group identifier or an identifier of a person related to a credit union (without a dot), which is assigned to each group of persons mutually related to a credit union or a separate person related to a credit union to whom a loan has been issued. Accordingly, the same unique group identifier shall be indicated in the report for each person included in a group of persons mutually related to a credit union;

25.2. The identifier of a group of persons mutually related to a credit union or a person related to a credit union, if in the reporting quarter there is a separate person related to a credit union to whom a loan has been issued, is formed by the identifier of the respective member of the board of directors, management board, or audit commission of the credit union, assigning, for example, a personal code or a member number automatically assigned by the credit union's information system;

25.3. The initially assigned identifiers of a group of persons mutually related to a credit union or a person related to a credit union shall not be changed and shall be used in the preparation of subsequent "Reports on Loans Issued to Persons Related to a Credit Union";

25.4. In the column group "Information on a person related to a credit union", provide information on each person related to a credit union separately:

25.4.1. In the column "Personal code or registration number" (column code 030), for a natural person related to a credit union, indicate the personal code or a similar code that allows unambiguous identification of the respective natural person, or for a legal person, indicate the registration number in the public register;

25.4.2. In the column "First name and surname or name" (column code 040), indicate the first name and surname of a natural person related to a credit union or the name of a legal person;

25.4.3. Persons related to a credit union are categorized, and in the column "Category" (column code 050), indicate:

25.4.3.1. the value "01" if a person related to a credit union is a member of the board of directors or management board of the credit union;

25.4.3.2. the value "02" if a person related to a credit union is the spouse, partner (with registered partnership), parent, or child of a member of the board of directors or management board of the credit union;

25.4.3.3. the value "03" if a person related to a credit union is a member of the audit commission of the credit union;

25.4.3.4. the value "04" if a person related to a credit union is the spouse, partner (with registered partnership), parent, or child of a member of the audit commission of the credit union;

25.4.3.5. the value "05" if a person related to a credit union is a commercial company in which the respective member of the board of directors, management board, or audit commission of the credit union or the spouse, partner (with registered partnership), parent, or child of a member of the board of directors, management board, or audit commission of the credit union has direct or indirect participation of 10 percent or more of the voting rights in the share capital of this commercial company;

25.4.4. In the column "Country code" (column code 060), indicate the code of the place of registration of a person related to a credit union in accordance with the international standard ISO 3166 "Codes for the representation of names of countries and their subdivisions";

25.5. In the column "Loans, in whole euros" (column code 070), indicate loans issued by the credit union to a person related to a credit union, without reducing them by the amount of established provisions;

25.6. In the column "Provisions for loans, in whole euros" (column code 080), indicate the amount of established provisions, if the credit union has established provisions for the respective loans issued to a person related to a credit union;

25.7. The column "Pledged deposits (eligible collateral for loans (070)), in whole euros" (column code 090) shall be completed by a credit union that takes pledged deposits into account in the calculation of the limitation on the amount of loans to persons related to a credit union, and it shall be calculated and completed as follows:

25.7.1. if the balance of the loan with accrued interest is equal to or exceeds the value of the pledged deposit in collateral, indicate the value of the pledged deposit;

25.7.2. if the balance of the loan with accrued interest does not exceed the value of the pledged deposit in collateral, indicate the balance of the loan with accrued interest;

25.8. In the column "Indirect liabilities, in whole euros" (column code 130), indicate sureties issued by a person related to a credit union to another member of the credit union, which the latter has used in transactions with the credit union.

VII. Procedure for calculating indicators related to foreign currency position limitations and requirements and procedure for preparing the "Report on Open Foreign Currency Positions"

26. When assessing compliance with the foreign currency position limitations specified in the twelfth part of Article 20 of the Law, a credit union calculates the total net foreign currency position in two stages. In the first stage, the net open position of each foreign currency is calculated. In the second stage, the total net position of foreign currencies is calculated.

27. The net open position of each foreign currency is calculated as the difference between the total sum of balance sheet assets and the total sum of balance sheet liabilities and off-balance sheet items in the respective currency. When calculating the open foreign currency position, balance sheet items include accrued interest and unfinished settlements for currency purchase and sale forward contracts (spot), and off-balance sheet items include sureties and other similar liabilities with which the credit union undertakes the obligation to answer for members' debts to creditors, if the credit union has grounds to believe that the transaction counterparty will demand their performance, and there is a possibility that the paid funds will not be recoverable. These off-balance sheet items included in transactions are indicated in the calculation of open foreign currency positions, reduced by the amount of established provisions.

28. The net open position of each foreign currency is converted into euros in accordance with the exchange rate of the respective foreign currency used in accounting at the end of the last day of the reporting quarter.

29. The total net foreign currency position of a credit union is the larger absolute value of the sum of individual net long positions of foreign currencies or the sum of net short positions of foreign currencies.

30. A credit union prepares the "Report on Open Foreign Currency Positions" in accordance with Appendix 5 of these Rules and indicates in it the net open position of each foreign currency, the total net position of foreign currencies, and the ratio of the total net position of foreign currencies to own capital.

31. In the "Report on Open Foreign Currency Positions", a credit union indicates foreign currency codes in accordance with the international standard ISO 4217 "Codes for the representation of names of currencies and funds". Each foreign currency code and the respective information on foreign currency shall be indicated once.

32. In the "Report on Open Foreign Currency Positions", foreign currency exchange rates are indicated as a decimal number with five digits after the decimal point.

VIII. Information to be provided to the Bank of Latvia in case of non-compliance with regulatory requirements

33. A credit union shall immediately inform the Bank of Latvia if:

33.1. the credit union's capital adequacy ratio decreases to a level lower than the percentage level specified in the first part of Article 20 of the Law on capital adequacy;

33.2. the credit union provides credit services to commercial companies and cooperative societies and its own capital becomes less than the total amount of own capital, which consists of the amount of own capital required to comply with the capital adequacy requirement specified in the first part of Article 20 of the Law, and the amount of own capital required to comply with the capital conservation requirement;

33.3. the number of members of the credit union has become less than the number of members specified in point 1 of Article 21.1 or point 1 of the first part of Article 29.1 of the Law;

33.4. the total share capital of the credit union financed from the loan funds allocated by it increases to a level greater than the percentage level specified in the fourth part of point 1.4 of Article 15 of the Law;

33.5. the liquidity total position limits for time intervals up to 30 days and up to 90 days specified in subpoint 12.2 of these Rules are not observed;

33.6. the large risk exposure limitations specified in the eighth, ninth, or fourteenth part of Article 20 of the Law (if the credit union provides credit services to commercial companies and cooperative societies) are exceeded;

33.7. the limitation on the amount of loans issued to persons related to a credit union specified in the tenth part of Article 20 of the Law is exceeded;

33.8. the foreign currency position limitations specified in the twelfth part of Article 20 of the Law are exceeded.

34. If any of the circumstances specified in point 33 of these Rules occurs, the credit union shall submit the following information to the Bank of Latvia in electronic form by sending it to the official electronic address of the Bank of Latvia:

34.1. the reasons for the decrease or exceedance of the respective indicator;

34.2. an action plan to restore compliance with regulatory requirements – capital adequacy requirements, capital conservation requirements, requirements on the minimum number of members, limitation on the total amount of share capital of the credit union financed from the loan funds allocated by it, liquidity total position limits, large risk exposure limitations, limitation on the amount of loans issued to persons related to a credit union, foreign currency position limitations – coordinating with the Bank of Latvia the deadlines for the implementation of the action plan.

IX. Final Provisions

35. Declare invalid the Rules of the Bank of Latvia dated December 16, 2024, No. 370 "Rules for the Calculation of Indicators Characterizing the Activity of Credit Unions and Preparation of Reports" (Latvijas Vēstnesis, 2024, No. 248).

36. For the preparation of data for the fourth quarter of 2025, use the reports specified in point 4 of these Rules, and these reports shall be prepared and submitted by the credit union to the Bank of Latvia by March 16, 2026.

President of the Bank of Latvia M. Kazāks

Appendix 1 to the Rules of the Bank of Latvia dated January 26, 2026, No. 411

Calculation of compliance with capital adequacy ratio and capital conservation requirements and other information

Position name Position code Value A B 010 Assets (reduced by provisions), in whole euros 010

Off-balance sheet items (reduced by provisions), in whole euros 020

Pledged deposits (eligible collateral for loans and off-balance sheet items), in whole euros 1 040

Own capital, in whole euros 030

including paid-up share capital (completed by a credit union that provides credit services to commercial companies and cooperative societies 2 ) 031

Capital adequacy ratio (030/(010+020–040)), % 100

Information on compliance with capital conservation requirements (completed by a credit union that provides credit services to commercial companies and cooperative societies 2 )

Total sum of risk exposures with commercial companies and cooperative societies 2 , in whole euros 310

Pledged deposits (eligible collateral for risk exposures with commercial companies and cooperative societies 2 ), in whole euros 1 320

Capital conservation requirement ((310-320)*2.5%), in whole euros 330

Surplus (+)/deficit (-) of own capital, taking into account the capital conservation requirement in addition to the capital adequacy requirement (030-(010+020-040)*10%-330), in whole euros 340

Information on the number of members and share capital included in the share capital

Number of members 210

Total nominal value of shares for which a disposal request has been submitted, in whole euros 220

Information on the financing of the credit union's share capital from the loan funds allocated by it

Total share capital financed from allocated loan funds, in whole euros 410

Total ratio of share capital financed from allocated loan funds to share capital (410/031), % 420

1 Completed only by a credit union that takes pledged deposits into account in the calculation. 2

Commercial companies and cooperative societies specified in points 2 and 3 of the fifth part of Article 5 of the Credit Unions Law.

President of the Bank of Latvia M. Kazāks

Appendix 2 to the Rules of the Bank of Latvia dated January 26, 2026, No. 411

Report on the term structure of assets and liabilities

1. Asset term structure (in whole euros)

Position name Position code Total (020+...+100) On demand Assets with remaining term Overdue assets Pledged assets Up to 7 days From 8 to 30 days From 31 to 90 days From 91 to 180 days From 181 to 360 days From 361 days A B 010 020 030 040 050 060 070 080 090 100

Total assets (110+120+130+140+150+160+170+180) 100

Cash 110

x x x x x x x x

Claims against credit institutions of the Republic of Latvia 120

Claims against credit unions of the Republic of Latvia 130

Loans 140

including to commercial companies and cooperative societies* 141

Debt securities 150

Fixed assets and intangible assets 160

x x x x x x

x

Expenses of future periods and accrued income 170

x

Other assets 180

• Commercial companies and cooperative societies specified in points 2 and 3 of the fifth part of Article 5 of the Credit Unions Law.

2. Term structure of liabilities and off-balance sheet items (in whole euros)

Position name Position code Total (020+…+090) On demand Liabilities and off-balance sheet items with remaining term Borrowing against asset pledge Up to 7 days From 8 to 30 days From 31 to 90 days From 91 to 180 days From 181 to 360 days From 361 days A B 010 020 030 040 050 060 070 080 090

Total liabilities and off-balance sheet items (210+220+230+240+250+260+270) 200

Liabilities against credit institutions of the Republic of Latvia 210

Liabilities against credit unions of the Republic of Latvia 220

Deposits 230

Income of future periods and accrued expenses 240

x

Provisions for liabilities and payments 250

x

Other liabilities 260

Off-balance sheet items 270

x

including transactions with commercial companies and cooperative societies* 271

x

Liquidity net position (100–200) 300

x

Liquidity total position 400

x

x

• Commercial companies and cooperative societies specified in points 2 and 3 of the fifth part of Article 5 of the Credit Unions Law.

President of the Bank of Latvia M. Kazāks

Appendix 3 to the Rules of the Bank of Latvia dated January 26, 2026, No. 411

Large Risk Exposures Report

No. p. k. Identifier of an individual member or total risk group Type of member (individual member or group) Information on an individual member or a member included in a total risk group Risk exposures, in whole euros Provisions for risk exposures, in whole euros Pledged deposits (eligible collateral for risk exposures), in whole euros 2 Loans reduced by provisions and pledged deposits (210–311–411), and their ratio to own capital Large risk exposures at member level (reduced by provisions and pledged deposits) (210+220+230–310–410), in whole euros At member level At group level Personal code or registration number First name and surname or name Country code Commercial company or cooperative society 1 Loans to members Guarantees and other off-balance sheet liabilities Other transactions

including in the column 'Loans to members' (210) indicated loans

including in the column 'Loans to members' (210) indicated loans Sum, in whole euros Ratio to own capital, % Sum, in whole euros Ratio to own capital, % 010 020 030 110 120 130 140 210 220 230 310 311 410 411 510 520 610 620 700

Total sum of large risk exposures (010)

Own capital (020)

Ratio of total sum of large risk exposures to own capital, % (030)

Total sum of large risk exposures with commercial companies and cooperative societies 1 (040)

Ratio of total sum of large risk exposures with commercial companies and cooperative societies 1 to own capital, % (050)

Credit Unions Law

5. Article, Part 5, Paragraphs 2 and 3 mentioned commercial company or cooperative society. 2 Only a credit union that takes pledged deposits into account in the calculation shall fill this out.

President of the Bank of Latvia M. Kazāks

Appendix 4 to the Bank of Latvia Rules No. 411 of 26 January 2026

Report on Loans Granted to Persons Associated with Credit Unions

No. Item. Identifier of a group of persons mutually associated with a credit union or a person associated with a credit union Information on a person associated with a credit union Loans, whole euros Provisions for loans, whole euros Pledged deposits (collateral for loans (070)), whole euros * Loans reduced by provisions and pledged deposits (070–080–090) Indirect liabilities, whole euros Person code or registration number Full name or name Category At the Member level At the Group level (for a group of persons mutually associated with a credit union or a person associated with a credit union) Amount, whole euros Amount, whole euros Ratio to own funds, % 010 020 030 040 050 060 070 080 090 100 110 120 130

• Only a credit union that takes pledged deposits into account in the calculation shall fill this out.

President of the Bank of Latvia M. Kazāks

Appendix 5 to the Bank of Latvia Rules No. 411 of 26 January 2026

Report on Open Positions in Foreign Currencies

Foreign currency code Amount in foreign currency Foreign currency exchange rate Net position (030x040), whole euros Ratio of net position to own funds Assets Liabilities and off-balance sheet items Net open position (+/–) (010–020) Long (+), if 030>0 Short (–), if 030<0 A 010 020 030 040 050 060 070

Total (010) x x x x

x Total net position in foreign currencies (Greater absolute value of Total (050) or Total (060)) (020)

Own funds (030)

Ratio of total net position in foreign currencies to own funds, % (040)

President of the Bank of Latvia M. Kazāks

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