FKTK has completed an assessment of the new business models of 12 Latvian banks and approved the individual key performance indicators for each bank - capital and liquidity requirements - as well as individual supervisory measures for each bank for this year.
Putniņš said: "I think we will now have a banking sector in line with the size of the economy and its performance in the future. It is now very important to regain a good international reputation, and confidence in our ability to change and self-regulate into a new growth cycle. This is a good starting point for renewing the international reputation of the financial sector."
Along with a new risk mitigation approach, the Latvian banking sector is now focusing on attracting EU and EEA customers by giving up most of its former customers in former CIS countries such as Russia and Belarus.
FKTK said the banks that used to cater almost exclusively to such clients, and which have been exposed as being involved in everything from money laundering to sanctions-busting had "freed themselves from the presence of risky foreign customers, including discontinued cooperation with shell companies prohibited in Latvia."