bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Friday 03.04.2020 | Name days: Daira, Dairis
LatviaLatvia

Purgaile: the number of banks may decrease in Latvia this year

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

FKTK, banks, Latvia, liquidity, business, model, change

Santa Purgaile

The number of banks operating in Latvia may become smaller, said Finance and Capital Market Commission (FKTK) chairperson Santa Purgaile said at a meeting of Saeima’s Public Expenditures and Audit Committee on Tuesday, 14 January.

The head of FKTK explained to deputies that there are two groups of banks in Latvia – banks that focus mainly on domestic customers and banks that previously focused on foreign customers but are now in the middle of changing their business model.

«Of the ten banks in the middle of restructuring there are those whose business model change is progressing successfully and they may join the first group in spring. However, there are also banks that have not finished their transformation and their progress is not very good. I cannot say the number of banks we have now will remain the same by the end of the year,» said Purgaile.

She said the main reasons for problems with business model change include the fact that banks do not have a clear future business niche, or there are problems with attraction of additional capital to restart crediting. There are also banks that do not show much interest in rejecting high-risk clients.

When asked how many potentially problematic banks there are in Latvia, Purgaile said there are definitely no more than three.

«In any case, even if these banks suffer problems, their overall influence on society and economy is insignificant. Even in the worst possible scenario the effect on society will be minimal,» explains Purgaile.

She adds the general capital and liquidity indexes for Latvian banks remain high and even some banks of the second group have very high liquidity reserves.

Read also: Kazāks: FKTK merge with the Bank of Latvia has more advantages than disadvantages

At the same time, Purgaile notes the profitability indexes of the banks of the second group are far behind the indexes of banks from the first group. Nevertheless, capital returns for these banks is sufficient and reaches EU levels.

Purgaile adds that lower profitability can be explained with rejection of high-risk clients, which causes banks to lose revenue.


Leave a reply

COVID-19 prompts Latvian government to involve army in border patrol with Belarus

Latvian Defence Minister Artis Pabriks has issued an order for Latvian National Armed Forces (NBS) to provide support to the State Border Guard by sending national guardsmen to organize additional patrolling of the Latvian-Belarusian border, as confirmed by the minister.

Lithuania puts COVID-19-related prosecution above human rights

What should come first in a time of emergency like the global coronavirus (COVID-19) pandemic? Obviously, order, but what about human rights?

Idleness rules will apply to companies with tax debts in Latvia

The idleness regulations in Latvia will apply to companies with tax debts, as provided by amendments to Latvian government rules approved on Thursday, 2 April, to rules on companies affected by COVID-19 and who qualify for idleness support and other benefits.

Court to enforce nearly 12 000 euros from Gobzems for defaming Bunkus family

Riga City Vidzeme Suburb Court has partially satisfied the plea from the surviving members of the family of the murdered lawyer Mārtiņš Bunkus against Saeima deputy Aldis Gobzems over defamation. The court has decided to enforce EUR 11 833 from him, as confirmed from the deputy.

Spain registers unprecedented job loss as lethal cases of COVID-19 exceed 10 000

In Spain, nearly 900,000 jobs have been lost since mid-March during strict measures to fight the coronavirus. 10,000 Spaniards have died from the virus disease, BBC reports.

Emīls Jakrins becomes board chairman of restaurant business company Vincents

Ex-Riga City Council’s Transport Department’s head Emīls Jakrins has become board chairman of architecture, design and restaurant business company LLC Vincents, according to information from Firmas.lv.

Jānis Vitenbergs approved in Latvia’s Economy Minister's post

On Thursday, 2 April, Latvia’s Saeima approved parliamentarian Jānis Vitenbergs as the country’s economy minister.

Large mine closes in Estonia after one of 800 miners tested positive for COVID-19

In Estonia, it has been decided to close one of two large oil shale mines after one miner tested positive for COVID-19, Estonian public broadcaster ERR reports.

COVID-19 update in Baltics. 458 cases in Latvia, 649 in Lithuania, 858 in Estonia

The number of confirmed COVID-19 infection cases in Latvia has reached 458, growing by 12 cases in the past day. Meanwhile, Lithuanian media report 649 confirmed coronavirus infection cases.

Germany to keep gathering restrictions past Easter

German Chancellor Angela Merkel has warned that the situation with the outbreak of COVID-19 in Germany is far from being over as the government extended its strict rules for gathering in public places until April 19, DW reports.

Shuttle buses and express buses on hold in Riga

LLC Rīgas mikroautobusu satiksme has decided to shut down shuttle bus services on all routes in Riga until the state of emergency in Latvia is over, as confirmed by RMS.

Latvian government to finance COVID-19 crisis prevention efforts from state budget

Efforts to overcome the direct negative effects from COVID-10 crisis will be financed from the state budget. After the crisis, however, the economy will be stimulated using EU funds, as decided by Finance Minister Jānis Reirs’ led work group for support of entrepreneurship and the employed on Wednesday, 1 April.

EU planning lending programme to support temporary work schemes

EU member states would guarantee the creation of a fund up to 100 billion euros aimed at providing loans to governments to support workers in countries hard hit by the coronavirus pandemic, the European Commission plans, according to EurActiv.

Minister: repatriation efforts may be restarted mid-April

Repatriation efforts may be restarted in the middle of April, said Latvia’s Transport Minister Tālis Linkaits on 1 April at a conference of Latvian municipalities on public transport and traffic during a state of emergency.

Saeima committee supports writing off debts left from 2008 crisis

On Wednesday, 1 April, Latvian Saeima’s Budget and Finance Committee conceptually supported during a remote meeting the proposal to allow credit institutions to one-sidedly write off debts for mortgage loans taken prior to the 2008 economic crisis, as reported by Saeima press-service.

Belarus introduces ban on buckwheat exports

Belarusian government has prohibited temporarily the export of buckwheat and other staple foods, state news agency BelTA reported.

Moscow tests app for tracking infected people required to self-isolate

In Moscow, where a lockdown has been in place since the beginning of the week, a new smartphone app is being developed and tested aimed at ensuring that patients with mild symptoms adhere to their contract of self-isolation, Russian state news agency TASS reports.

Multiple of Nature Protection Office’s duties delegated to the State Environment Service

Latvia’s Environment Protection and Regional Development Ministry issued an order on 30 March to delegate multiple duties of the Nature Protection Office to the State Environment Service, according to information from LETA.

Latvian State Employment Agency received notifications for numerous planned lay-offs

Latvia’s State Employment Agency has received notification about planned lay-offs of 3 258 employees of 19 companies.

1 April onward entry to Jurmala by car will not be allowed without paying 2 euro fee

Wednesday, 1 April, marks the beginning of the the season when entry to Jurmala by car will require a 2 euro fee, as reported by Jurmala City Council.

Estonia looking at mass tests’ option to determine latency of COVID-19

The Estonian government has set itself the goal of mass tests of COVID-19 in the society, its Foreign Minister has revealed as the worst-hit Baltic country is looking at ways to overcome the outbreak, Estonian public broadcaster reports.

COVID-19 update in Baltic. 446 in Latvia, 581 in Lithuania, 779 in Estonia

The number of confirmed COVID-19 infection cases in Latvia has reached 446. Meanwhile, Lithuanian media report 581 cases.

Countries rush to support production of lung ventilators, essential amid pandemic

Governments and medical institutions in the world seek to acquire many lung ventilators that can save lives in severe cases of the COVID-19 disease. France and Israel have made recent announcements in this respect, German public broadcaster DW reports.

Public catering companies to adopt new hygiene requirements as of 1 April

Latvia’s Agriculture Ministry has expanded requirements for public catering and retail trade companies, BNN was told by the ministry.

At least 26 healthcare workers in Latvia confirmed infected with COVID-19

At least 26 healthcare workers in Latvia have been infected with COVID-19, according to information reported by the Disease Prevention and Monitoring Centre expert Jurijs Perevoščikovs.


Do NOT follow this link or you will be banned from the site!