FCMC does not project novel coronavirus to have direct impact on banking sector

  • 2020-03-04
  • LETA/TBT Staff

RIGA - The ongoing spread of the novel coronavirus Covid-19 is not expected to have a direct impact on the bank banking sector, Santa Purgaile, head of the Financial and Capital Market Commission (FCMC), said in an interview with TV3 channel Wednesday.

She noted at the same time that Latvia is a part of the global economy and if it slows down, the Latvian economy will be affected as well. 

In such an event, banks can start evaluating risks more cautiously, namely, the slowdown's potential impact on their clients, the FCMC head explained. 

The Organization for Economic Cooperation and Development (OECD), as well as other experts are cutting their global economic growth forecasts for this year amid coronavirus fears.