bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Friday 18.01.2019 | Name days: Antis, Antons
LatviaLatvia

Bank: this year’s priority will be restoring finance sector’s reputation

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThis year’s priority will be ensuring sustainable development and restoration of the finance sector’s reputation, says chairman of Baltic International Bank Viktors Bolbats.

He said Latvia’s banking sector faced many major challenges in 2018. Certain changes occurred in the finance sector – from ABLV Bank’s self-liquidation to the banks’ performed money laundering and terrorism financing prevention measures and legislative changes that had influenced the outflow of foreign clients’ capital.

Bolbats notes that currently Latvian banks are in the process of gradually transitioning to new business models, focusing on EU and Eurozone member states. The deposit structure has changed as well – 90% of all banking deposits in Latvia come from domestic and EU clients.

«It is the time of change – a new year has dawned, and we stand before an important moment for government formation. Now is the time to look back on prior accomplishments. I also believe state institutions should review the changes in the industry. Evaluation is the only thing that can help determine if there’s been any progress,» said Bolbats.

He also says the finance sector needs a sense of stability and a public evaluation of what industry players have accomplished. This year Latvia will have to report to Moneyval on European Council expert committee’s money laundering and terrorism financing prevention measures.

«The main priority of 2019 will be the restoration of reputation of the country’s finance sector. This is why controlled growth of each bank and a detailed strategy of the entire industry are important. I am confident it is vital to form synergy between large finance market players and smaller niche banks that share the same values and work principles to ensure sustainable development of Latvia’s finance sector,» said Bolbats.

He adds that cooperation between state institutions and banks was positive last year. This cooperation is expected to continue in 2019. «Institutions supervising Latvia’s banking sector are gradually strengthened. Financial institutions, on the other hand, continue analysing risk assessment procedures and their efficiency. Industry companies cooperate with the public sector within the necessary capacity. By contributing their part, they help introduce higher standards for preventive measures against illegal financial transactions,» says the chairman of Baltic International Bank.

Also, according to him, the actual trend in finance industry will be technological transformation in 2019. ‘Financial institutions already compete with one another in adoption of new technologies, improvement of customer experience, reduction of costs and optimization of processes. This is why innovative services will be the deciding factor in 2019. This includes flash payments, open banking, automation of services, different visual changes and porting of internet banking services to new devices. Financial institutions intend on integrating fin-tech solutions in their services, improving efficiency of technologies and reducing paper document processing costs. Technologies will not only continue influencing financial institutions’ decision on locations for branch offices but also change formats of existing ones,’ said the bank’s chairman.

He also adds that US Google and UK Revolut companies had registered payment companies in Lithuania last year. It is also expected that Apple Pay may come to Baltics soon.

Bolbats mentions that business longevity and environmental protection are now more topical than ever before. ‘Society’s attitude towards longevity and green lifestyle advantages gradually changes. People living in developed countries more and more often find a green policy needed and desirable,’ he says.

«In response to climate change, finance industry has already begun implementing ESG (Environmental, Social, Governance) concept in its everyday work. ESG policy has adapted financial products – clients have an option to receive finances in a way that supports projects that fight against the threat of climate change and support socially important projects. It is expected that financial products will receive the most demand and investments,» Bolbats adds.

Asset-wise Baltic International Bank was Latvia’s 11th largest bank in 2018. Its largest owners include Valērijs Belokoņs (69,9%) and Vilorijs Belokoņs (30,05%).


Leave a reply

New Unity’s candidate to continue talks with partners on government declaration over weekends

New Unity’s prime minister candidate Krišjānis Kariņš plans to continue working on the government declaration, cooperation agreement and fiscal discipline agreement over Saturday, 19 January, as confirmed by New Unity’s press-secretary Sandris Sabajevs.

Head of Riga City Council’s committee reports results of non-existent vote; dismissal follows

As the chairperson of Riga City Council’s Social Affairs Committee, Olga Veidiņa from Harmony, submitted a written report to the mayor, detailing how all members of her committee had allegedly voted in favour of paying a bonus to Orphan Court chairman Aivars Krasnogolovs even though such a topic was never discussed by this committee, BNN was told by opposition deputy Marija Balcere from New Conservative Party.

1991 Barricades commemoration events in Latvia

One of the most notable chapters in Latvia’s newest history was written in January 1991 – the barricades period, when Latvian residents commemorate the victims and feel pride for the bravery of the nation in defending their country’s freedom.

MEP: Britain’s non-exit from EU is no longer possible

It is no longer possible for Britain to stay in the European Union. Even British politicians who have spoken against Brexit admit as much, said Latvian MEP Roberts Zīle in an interview to Rīta panorama.

Dismissal of Nils Ušakovs alone would not change a thing in Riga

«No change will come without dismissal of Riga City Council and its subsequent re-election. Activities that point towards the possibility of corruption did not appear solely during the term of the current team at Riga City Council. Its roots date a long way to the past. This means cleaning and general disinfection efforts should be very thorough. Dismissing Nils Ušakovs alone would not help change a thing. Ušakovs both maintains and serves the system,» said opposition deputy Jānis Ozols in a conversation with BNN.

Proposal to make ports state capital association faces no major objections in Latvia

No major objections have been voiced so far against transport minister candidate Tālis Linkaits’ proposal on reforming ports as state capital associations.

Latvia’s forming coalition promises to be more open to opposition

The forming coalition in Latvia may consider proposals from the opposition and even support the more constructive of them, said prime minister candidate Krišjānis Kariņš in a conversation with journalists on Thursday, 17 January.

Air temperature in Latvia may drop as far as -21° C next week

After the windiest and snowiest week, as anticyclone activity increases, weather in Latvia will become more stable – it will become drier and considerably colder.

Lithuania’s ruling majority swings at media freedom, experts warn

All media, the so-called fourth authority of power, has been facing some international challenges, with the European Parliament set to vote next Monday on final text of Article 13, the proposed EU directive on copyright, which, if implemented, could censor internet users and internet platform hosts through artificial intelligence-employing filters.

Riga Active Seniors Alliance: seniors’ behaviour on the road should be discussed

Riga Active Seniors Alliance supports Latvian State Police informative safety campaign that addresses the behaviour of pedestrians on the road. This campaign invites seniors to pay attention to their own behaviour to ensure safe movement without putting at risk other traffic participants.

New healthcare service principle’s adoption in Latvia postponed until July

The rights to receive healthcare services as part of state compulsory healthcare regardless of their health insurance contributions will remain available for residents until 30 June 2019, Latvian Saeima has decided.

150 jobs lost in Estonia as polluting power stations reduce operations

Estonian state energy giant Eesti Energia, which mostly generates energy from fossile oil shale plants will reduce its operations at the Narva power plants, resulting in 150 job cuts.

Opinion: Russia will definitely interfere with European Parliament elections

According to Latvian member of the European Parliament Inese Vaidere, Russia will definitely attempt to interfere with upcoming European Parliament elections.

In no-deal Brexit, border control in Ireland would be obligatory

In an interview with the British news portal The Guardian, Michael Lux, a former head of customs legislation and procedures at the European commission, said the UK would have to impose customs checks and tariffs on the northern side of the border, despite claims to the contrary by Brexiters.

Opinion: Daugavpils City Council doesn’t want emergency elections; to agree on new mayor

Daugavpils City Council deputies Rihards Eigims and Andrejs Elksniņš are afraid of voters’ opinion in regards to emergency elections. Because of that, they will agree on the next mayoral candidate at the 17 January meeting, said Latgale party representative Jānis Lāčplēsis.

Scientists suggest sustainable diet to save the planet and prevent premature deaths

An international group of 37 scientists has developed a diet that promises to save lives, feed 10 billion people and all without causing catastrophic damage to the planet.

Latvian parties taking too long on compiling government cooperation documents

Although work on the new government’s cooperation documents has taken more time than initially expected, Latvian prime minister candidate Krišjānis Kariņš still hopes for the government to be approved next week.

Ministry: more children end up in families in Latvia not through foster families or guardians

More and more children in Latvia end up in families not through adoption, but through foster families or guardians, says Welfare Minister’s office manager Linda Baļčūne.

Estonian population continues to increase, mostly due to immigration

Estonia has registered population growth for the third consecutive year as 4,690 more persons lived in the Baltic country on January 1, 2019 than a year before, official statistics show.

Sweden to nominate head of government, who could finally be confirmed

In the Swedish parliament, three parties have stated they would not vote against caretaking Prime Minister Stefan Löfven to have another attempt to form a center-left government after a four-month political crisis.

In 2018 Latvia experienced more rapid growth of car registrations than EU

Last year the number of newly registered cars in Latvia was higher than the average in the European Union, according to the latest data from European Automobile Manufacturers' Association.

Latvian government prepares legislation to protect rights of Latvian in Britain after Brexit

Latvian government has started working on a document that provides for the protection of rights of Latvian citizens working in Britain and vice versa after Brexit, says Latvian Foreign Affairs Minister Edgars Rinkēvičs.

Karolis Sankovski appointed as chairman of RB Rail council

A new council chairman has been appointed in Baltic joint company RB Rail. Riia Sillave and Edvīns Bērziņš were picked as vice-chairmen, as the company reports.

airBaltic carried record number of passengers in 2018 – 4.1 million

Latvian airBaltic airline carried a total of 4,136,711 passengers to different destinations in 2018. This is 17% more when compared to 2017. The number of passengers carried in 2018 is airBaltic’s all-time highest, as BNN was told by the company.

KPV LV to decide on dismissing Kaimiņš as vice-chairman of party’s faction

KPV LV party’s Saeima faction plans to discuss the proposal of dismissing Artuss Kaimiņš from the post of the faction’s vice-chairman.