Three Latvian banks were included in the data: homegrown ABLV bank plus the local subsidiaries of Scandinavian banking groups Swedbank and SEB.
None of the trio were among the 25 Eurozone banks out of 130 identified in the data as having capital adequacy problems worth a total €25bn.
Commenting on the results Kristaps Zakulis of Latvia's financial regulator the Financial and Capital Markets Commission (FKTK) said: "I believe that we can be pleased with the results of the Latvian banks in this extensive examination of financial 'health' of banks. All the three Latvian banks subject to the comprehensive assessment have demonstrated good performance and passed this exam.
I believe that we can be pleased with the results of the Latvian banks in this extensive examination
"Overall, the banks in Latvia are well-capitalized that has been verified by the asset quality review focusing on the current financial situation. Besides, according to the stress test outcome, market participants have created adequate provisions in case of adverse market development scenario."
"Now, being aware of the actual situation in the euro area banking sector, the ECB alongside with national supervisors will continue the path to a more secure and sound sector development,” Zakulis said.
Swedbank responded to the data wit a statement saying: "The results confirm Swedbank’s strong asset quality and capital position and show that Swedbank and its Baltic subsidiaries have sufficient capital to withstand a severe stress scenario."
Similarly, SEB said the test results "prove SEB Latvia's high levels of stability and capitalization."
