By merging Finance and Capital Market Commission (FKTK) with the Bank of Latvia may result in approximately 30 people losing their jobs, FKTK chairperson Santa Purgaile said in an interview.
According to her, analysis of the possible merging of FKTK and Bank of Latvia showed that although there are risks, the benefits are much greater. “This merge is logical and risks are manageable,”added Purgaile.
Additionally, FKTK manager mentioned improved efficiency of operations as one of the biggest benefits from the merging of the two institutions. “With joint resources we would be able to monitor and respond to crises more efficiently, as well as improve financial stability and think about development of the finance and capital market”, said Purgaile.
“We have concluded that from the third year onward financial savings may reach EUR 1.6 million” said Purgaile.
At the same time, FKTK head mentioned that lay-offs are not the primary goal in the context of the merge. Nevertheless, according to initial estimates, the merging of FKTK and Bank of Latvia may result in approximately 30 people losing jobs.
As previously reported, on Tuesday, 26 May, Latvia’s Cabinet of Ministers conceptually supported the idea of merging FKTK and the Bank of Latvia. The new institution is expected to start operations in 2022 or 2023.
FKTK was founded on 1 July 2001, taking over the function of the Bank of Latvia in monitoring credit institutions, as well as the functions of the Insurance Monitoring Inspectorate, Securities Market Commission and Deposit Guarantee Fund Authority.
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