4. pants

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.