Rigensis exits the Latvian banking market

Rigensis bank, whch has been operating in Latvia since 2011, is winding up its banking operations, in the latest reorganization of the country's banking sector.

The Board of the Financial and Capital Market Commission (FKTK) said October 19 it had "adopted a decision to authorise the reorganisation of Rigensis Bank AS by re-registering it as a commercial company the activities of which are not related to the activities of credit institution. As from the entry into force of this decision, the licence issued to Rigensis Bank AS for the operation of credit institution ceases to be valid."

This decision was taken by the FKTK following a decision adopted by the July 19 extraordinary shareholders’ meeting to terminate the activities of Rigensis Bank AS as a credit institution and take the necessary steps to withdraw the credit institution operating licence.

Santa Purgaile, FKTK chairperson, said: “In 2018, banks that had previously focused on foreign customer service started the change of their business model and the FKTK conceded that individual banks in Latvia won’t be able to find a new business niche appropriate to their interests, opportunities and plans, and this will put an end to their business of a credit institution.

"Over the last five years, there has been a substantial transformation of Latvia’s banking sector. With the strengthening of risk management, geographical structure of deposits has changed essentially, that’s why the decision of shareholders of Rigensis Bank AS is not unexpected and marks a sort-out in the banking sector and changes in the risk management culture.”

Rigensis Bank AS has gradually reduced the scope of its activities, since in accordance with the Credit Institution Law the withdrawal of a credit institution licence is possible if the credit institution no longer has deposits within the meaning of the Credit Institution Law. The Bank has ensured the protection of its customer and kept them informed, as well as fulfilled its obligations to depositors.

Rigensis Bank AS has been operating in Latvia since June 2011, offering specialised financial products. Russian businessmen Igor Tsyplakov, Alexei Gudaytis and Dmitry Sokolov were behind it as part of their ICT Group.

In 2019 it was slapped with a 1 million euro fine as Latvia desperately tried to clean up a banking sector which had won an international reputation for money laundering and other shady practices.

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