Despite being hit with unprecedented fines and subjected to increasing regulatory scrutiny, banks continue to post staggering profits in Latvia, with the 2016 profit of the banking sector up 9.1% on year over 2015.
The creditor should have the right to choose the administrator of an insolvency procedure, Mārtiņš Bičevskis, head of the Commercial Banking Association, told Latvian Radio Tuesday.
President Raimonds Vejonis said Tuesday that efforts to clean up Latvia's financial services sector must continue after the country signs up to membership of the Organization for Economic Cooperation and Development on June 2.
In an unprecedented move, Latvia's financial regulator the Financial and Capital Markets Commission (FKTK) has announced a major audit of the country's numerous boutique banks in an effort to reassure the US and EU that the sector is not awash with laundered money.
Moody's Investors Service has changed the outlook on the Baltic banking systems to stable from the previously negative outlook. Moody's anticipates that solid economic fundamentals will support credit growth, asset quality and profitability over the next 12 to 18 months, Baiba Melnace of the Association of Latvian Commercial Banks told LETA Friday.
In the first eleven months of 2014 total deposits in Latvia’s commercial banking sector grew by 1.5%, or €320.2m, according to data released by the Financial and Capital Markets Commission (FKTK) Monday.