Latvia’s economy would benefit from some new bank entering the market, said Finance and Capital Market Commission (FKTK) head Santa Purgaile.
In spite of claims that there are too many banks in Latvia, she believes it is possible for banks working in a specific niche to work together in the country.
Purgaile says that although the economy continues growing, the volume of loans in Latvia’s national economy remains low.
She believes Latvia’s economy would benefit from some global or European level player entering the market or if one of the local market participants forming someone new.
FKTK manager says there are no indications at the moment that would suggest creditors want to enter Latvia’s market. However, she also said Latvia would be prepared for this. First it is necessary to restore the country’s reputation on the international market.
Purgaile says at the beginning of the year it is not possible to tell how the number of banks could change by the end of the year – the composition of the finance market in Latvia or the world is not static and changes appear every day. The media had previously mentioned that the number of banks in Latvia may reduce. Purgaile called it an interpretation of results of ongoing discussions, however. (BNN/Business World Magazine)