bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Tuesday 23.04.2019 | Name days: Jurģis, Juris, Georgs
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

Medicines for people with mental disorders to become more accessible in Latvia

To improve accessibility of medicines for people suffering from psychological and behavioural disorders, Latvia’s government decided to expand the list of diagnoses eligible for state-compensated medicines on Tuesday, 23 April.

Belarus halts exports of low quality oil products to Baltics, other neighbours

Belarusian Oil Company has announced the temporary suspension of light oil products to the Baltic states, Poland and Ukraine explaining that low-quality oil products have been supplied by Russia to Belarusian refineries.

Producer prices in Latvia: increase of 4.1% in March

Compared to March 2018, average level of producer prices in Latvian industry increased by 4.1 % in March 2019. The level of prices of products sold on the domestic market rose by 6.5 % and that of exported products – by 1.9 %.

Saeima deputy confident on the need to dismiss National Mass Media Council

Considering recent development, the National Electronic Mass Media Council should be dismissed, says head of Saeima’s Human Rights and Public Affairs Committee Artuss Kaimiņš.

Estonian President continues to meet with ministerial candidates

As outgoing Estonian Prime Minister Jüri Ratas' is likely to form his second government with the controversial Conservative People's Party of Estonia and the national-conservative Pro Patria, Estonian President is meeting with his ministerial candidates.

Teachers demand from Latvia’s ministry specific amendments to regulations

Latvian Trade Union of Education and Science Employees sent a letter to Latvia’s Education and Science Ministry on Tuesday, 23 April. In it, representatives demand strict guarantees and specific amendments to regulations to ensure increase of wages for teachers in accordance with the schedule.

Catalonia – key issue in Spanish pre-election debate

As Spain nears its early general election on Sunday, April 28, its outgoing Prime Minister faced criticism from his opponents over Catalonia's secession crisis.

Latvian minister orders closure of Deglava Bridge in Riga

Latvia’s Interior Affairs Minister Sandis Ģirģens has ordered State Police to close down Deglava Bridge starting with Thursday, 25 April.

Sri Lanka death toll rises. Authorities had been warned about possible attacks

In Sri Lanka, the number of people killed in attacks on churches and hotels has reached 290 people, while it has been revealed that national authorities had been warned about possible attacks.

Road construction company Binders to attract workers from Ukraine and Belarus

Latvian road construction company SIA Binders experiences a shortage of workers. Because of that, the company plans to attract guest workers from Ukraine and Belarys, says Bindars board chairman Aigars Sēja.

Ukrainian presidential election won by Zelensky on hopes of change

The run-off of the Ukrainian presidential election has been won by comedian Volodymyr Zelensky, who has promised change and better relations with Russia.

Air temperature to reach +23° C in Latvia this week

Dry weather will remain in most of Latvia this week. The sun will shine often and there will be slow eastern and south-eastern wind. However, strong wind is expected to come on Wednesday, 24 April, and precipitation is expected at the end of the week.

Forevers: 615 tonnes of grilled meat was consumed in Latvia last year

615 tonnes of meat products for grilling was sold in Latvia in 2018, according to sales data from meat processing company Forevers.

Every day hens in Latvia produce an egg for every resident

The number of laying hens in Latvia, when compared to 2017, had increased 19.2% in 2018, reaching 3 million, according to data from the Central Statistical Bureau of Latvia. Compared to the previous year, the total number of domestic birds has increased 9.3%, reaching 5.4 million, which is the largest index since 1992.

73% of residents believe they benefit from Latvia’s membership in EU

Approximately 73% of residents believe Latvia benefits from membership in the European Union. Interviewed residents mainly outline job opportunities, economic growth and security, according to the latest data compiled by Eurobarometer.

General government budget deficit in Latvia reached EUR 295.4 million last year

In 2018 general government budget deficit accounted for EUR 295.4 million or 1 % of the Gross Domestic Product and general government consolidated gross debt amounted to EUR 10.6 billion or 35.9 % of the GDP.

Egils Levits optimistic about his chances becoming Latvia’s president

Presidential candidate and European Court of Justice Judge Egils Levits is optimistic about his chances of becoming Latvia’s next president.

Estonia’s government to be formed by standing Prime Minister Jüri Ratas

On Thursday, 17 April, Estonia’s parliament entrusted formation of the country’s government to Centre Party’s chairman and standing Prime Minister Jüri Ratas.

At least 29 die as German tourist bus runs off road in Portugal

At least 29 people were killed and 27 were injured when a German tourist bus ran off the road on Madeira Island in Portugal, as reported by BBC.

EY: businessmen show very positive outlook towards global economy

The latest Ernst&Young EY Global Capital Confidence Barometer reveals a generally optimistic outlook businessmen have around the world – 93% of interviewed company CEOs believe the economic situation in the world is steadily improving. The same opinion was voiced by 73% of interviewed CEOs last year.

Orkla Latvija signs contract for construction of Laima manufacturing plant in Ādaži

On Wednesday, 17 April, Orkla Latvia signed a contract worth EUR 8.9 million with construction company Merks on the construction of a Laima manufacturing plant in Ādaži, BNN was told by Orkla Latvija representative Lineta Mikša.

As police arrive, Peru’s ex-president commits suicide

Ex-president of Peru Alan García committed suicide on Wednesday, 17 April, when police arrived to arrest him for corruption.

Estonia’s president to meet with Putin; the two will discuss Baltic security

On Thursday, 18 April, Russia’s President Vladimir Putin will meet with Estonia’s President Kersti Kaljulaid, as reported by Estonian public media ERR.

Europe’s borders to be reinforced – a specialist corps to be formed by 2027

On Wednesday, 17 April, the European Parliament approved a new law to strengthen Europe’s border and coast guard, as reported by EP representative in Latvia Signe Znotiņa-Znota.

Latvian residents engage in marriages more often than before

Over the past three years the number of registered marriages has risen slightly. In 2018, 13.4 thousand marriages were registered, which is 200 marriages more than in 2017 when the increase recorded over the year constituted 148 marriages.