Merger of financial regulator and central bank could cause 30 job losses

By adding the Finance and Capital Market Commission (FKTK) to the Bank of Latvia, approximately 30 people could lose their jobs, said FKTK Chair Santa Purgaile in an interview on Latvian Television on May 28.

She pointed out that these are employees who perform supporting rather than monitoring functions.

Purgaile believes that merger is positive because funds will be saved and the work of both institutions will become more efficient. Around EUR 1.6 million could be saved following the third year after the merger.

Purgaile pointed to the risks that "all decisions will be taken in one organization in the financial sector". At the same time, models to mitigate risks are being studied. The reform enforcers look at the European Central Bank model, where the authority carries out a supervisory function. "Both functions are not in contact and there is no conflict," Purgaile said.

As reported previously, the Cabinet of Ministers on May 26 supported in principle merging the Bank of Latvia with the financial regulator, FKTK. 

The FKTK was established on July 1, 2001. It is an autonomous public institution, which carries out the supervision of Latvian banks, credit unions, insurance companies and insurance brokerage companies, participants of financial instruments market, as well as private pension funds, payment institutions and electronic money institutions.

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