The Financial and Financial Market Commission (FCMC) has concluded the assessment of the new business models of 12 Latvian banks, taking account of the impact of the future business strategy as well as future risks.
The Scottish Council has agreed to each of the key performance indicators for each bank – capital and liquidity requirements, as well as separate audit measures for this bank this year.
Accordingly, the FCMC has completed the audit conversation with 12 Latvian banks on the new requirements. In this process, the individual performance indicators required for banking activity are explained, as are actions for the future provided, and more frequent provision for information and discussions about the process to develop new business models. introduction.
Chairman of the Peter Putniņš FCM said that "all the banks have made a mark of goodwill, releasing the country from unnecessary threat".
“For a limited time, there are nearly 10 billion euro of foreign customers in Latvia's financial sector. This has been a highly aggressive, rigorous process, which is then an excellent achievement for the industry as the process of reform that was planned for five years was largely achieved within two years, " t Putniņš said.
“All 12 banks on another business development route have been selected for discussion on change with experts and management of the FCMC, and so the solutions have been individual.
I believe our banking sector will be dependent on the size of our economy and its future performance. [..] This is a good start to renewing the international reputation of the finance sector, ”said Putniņš.
In the next 1-3 years, the banks will be assessed gradually according to the new business case, determining the most effective business areas in Latvian banks to ensure that they maintain profitability and sustainability. new models with an appropriate level of risk to the country and our economy.
“There is no reason to talk about dangerous foreign currency flowing in Latvia. The level of investments and foreign incentives that may be at risk will continue as low, and there is no reason for concern that our national authorities would not be adequately controlled, ”said Putniņš.
Alongside the new risk mitigation approach, the Latvian banking sector is now aiming to attract EU and EEA customers by providing the majority of customers outside this economic area. T .
The following indicators show the changes in the Latvian banking sector:
- Latvian banks are larger in domestic funding (80%) and from the European Union (10%), reaching 90% overall – so the euro will be the main currency;
- banks have freed themselves from the dangerous presence of overseas buyers, including imports. elimination of collaboration by Sligo companies in Latvia;
- Compared to 2014, the fast-track Latvian businesses have fallen more than 24 times in US dollars in Latvian banks.
Special attention has been given to the banking sector after the announcement in the middle of February about involvement with the ABLV Bank in cash schemes. Two weeks later, a brilliant bank share meeting decided on his own decision, followed by a new support bank manager.
Most of this non-residential funding goes directly through shells, companies that don't exist for anything they usually need in silver decorative schemes. LSM has previously published a summary of the focus of Latvian banks on non-residential services.