4. Article

We have submitted to Parliament the Law on Credit Institutions (LCI), which will bring our prudential framework in full compliance with the Basel Core Principles for Effective Banking Supervision (BCP). The newly established Financial and Capital Markets Commission (FCMC) made considerable progress in implementing the recommendations set forth in the joint IMF/World Bank Financial Sector Assessment Program (FSAP) report. This will ensure operational efficiency and full integration of supervisory functions, which is crucial to sustaining growth in Latvia's financial system.