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Vast majority will be able to recover Trasta deposits fully

Latvia's finance regulator, the Financial and Capital Markets Commission (FKTK), will soon reveal how clients of Trasta Komercbanka, which had its licence revoked by the European Central Bank Thursday, will be able to recover their deposits, reported Latvian Radio Friday.

Trasta was previously named in connection with numerous money laundering scandals.

FKTK head Pēters Putniņš told Latvian Radio that a total of 265 depositors have funds of more than the state-guaranteed €100,000 in the bank.

Of these, 44 are residents' deposits, 15 are Latvian companies, 52 are non-residents' deposits and 154 are deposits of foreign companies, Putniņš told Latvian Radio.

These clients will have to wait until the bank is liquidated for a chance to recover their deposits fully, while the rest have their deposits covered for by the state.

Putniņš said that the downfall of Trasta won't affect Latvia's banking system.

Mārtiņš Bičevskis, head of the Association of Latvian Commercial Banks, told Latvian Television Friday that according to FKTK data the bank did not have a plan to continue work and that the bank's footprint on the market was very limited, with 5000 clients and assets worth about 1% of the banking sector total.

While Trasta board chairman Gundars Grieze told LETA that lawyers are looking into the chance of appealing the European Central Bank decision.

Latvia has in recent weeks stepped up efforts to show it is serious about addressing allegations of money laundering within the boutique banking sector to prove it is ready to join the Organization for Economic Cooperation and Development (OECD).

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