The management structure of Latvijas Banka includes the Council of Latvijas Banka, which is a collegial decision-making body that manages Latvijas Banka, departments that are responsible for the execution of specific functions and processes and the achievement of their results, as well as committees and commissions.
The Council of Latvijas Banka is the main decision-making body of Latvijas Banka. The term of office of the Governor, the Deputy Governor and other members of the Council of Latvijas Banka is five years. Arvils Sautiņš and Aivars Skopiņš were members of the Council of Latvijas Banka until 1 July 2022 (the end of their term of office). On 9 June 2022, the Saeima of the Republic of Latvia approved the appointment of Ilze Posuma as a member of the Council of Latvijas Banka as of 2 July 2022.
The composition of the Council of Latvijas Banka, as at the end of 2022, was as follows:
- Governor Mārtiņš Kazāks;
- Deputy Governor Māris Kālis;
- Other members of the Council: Ilze Posuma, Andris Vilks, Zita Zariņa.
In 2022, several committees, commissions and working groups approved by the Council of Latvijas Banka, as well as the Commission for the FCMC Integration into Latvijas Banka (integration commission) continued their work, ensuring the high-quality performance of the tasks of Latvijas Banka. While strengthening the governance model of Latvijas Banka and preparing for the introduction of the governance system provided for in the new Law on Latvijas Banka, the Council of Latvijas Banka established a new audit committee on 31 January 2022, which oversees the preparation of Latvijas Banka’s financial statements, the operation of the internal control system, as well as operation of the internal audit and external auditors.
Two out of three members of the committee are independent professionals selected through a competition and are neither the officials nor employees of Latvijas Banka.
On 23 September 2021, the Saeima of the Republic of Latvia adopted the Law on Latvijas Banka, the development of which was started in 2020 and which is in force since 1 January 2023. A new central bank law was necessary for two main reasons – to ensure a modern and homogeneous legal framework for Latvijas Banka’s operation and to implement the integration of the FCMC’s functions into Latvijas Banka, supplementing the tasks of Latvijas Banka with regulating and monitoring the activity of the financial market and its participants, performing the tasks of the resolution authority and the operation of compensation disbursement schemes and ensuring the disbursement of compensation to investors.