It is clear there are too many banks for Latvia’s domestic market, said chairman of Finance and Capital Market Commission Peteris Putnins.
He admitted that not a single bank present in Latvia worked with just one clientele segment. However, the country’s market is not big enough for them to work as widely as Scandinavian banks, said Putnins.
He explained that the banks that mainly worked with “risky clients” were small and their balance became even smaller after risky clients were disposed of in Latvia.
Putnins says the only way those banks can remain in Latvia is finding a niche to fill.
The chairman of FCMC did not want to comment on who might stay and who might leave, because the free market determined everything and decisions were made by shareholders.
Putnins said implementation of recommendations from Moneyval was currently progressing well and the first results might come around summer.
Liquidation of ABLV Bank is also going well. Putnins says the bank’s creditors will likely receive their money in the second half of summer. (BNN/Business World Magazine)