Finance Minister: bank regulation is matter of national security

Take note – story published 8 years and 2 months ago

Newly-installed Finance Minister Dana Reizniece-Ozola on Friday praised the action of Latvia's financial regulator in withdrawing a banking license, saying the move was important to national prestige and national security as well as for purely commercial reasons.

Speaking to journalists after a meeting with Peters Putnins, also a new boy as head of the Financial and Capital Markets Commission (FKTK), Reizniece Ozola said it was right to withdraw Trasta Komercbanka's license to operate as it had "received lots of warnings" and that Latvian residents should not worry about any knock-on effects of Trasta's demise.

"Stable financial markets do not just concern the economic well-being of the country but our international prestige and national security considerations," Reizniece-Ozola said.

She also spoke to LSM about the non-resident banking sector in broader terms: 

Reizniece-Ozola on Trasta Komercbanka
00:00 / 01:46

Earlier, Putnins told journalists Trasta Komercbanka had its license pulled for three reasons: an unconvincing business plan, a shaky capital base and evidence that it had been involved in money-laundering.

Unless that evidence had been convincing, FKTK would not have acted as it did, Putnins told LSM.

FKTK chief Peters Putnins on Trasta decision
00:00 / 03:08
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