RIGA - Latvian banks have successfully completed work on risk reduction measures, Sanda Liepina, chairperson of the Finance Latvia Association (formerly the Association of Latvian Commercial Banks), said on the Morning Panorama news program of Latvian Television this morning.
“We believe that we have coped with the challenges that arose in February fairly successfully,” Liepina said, adding that with the work on risk reduction measures completed the banks can now focus on tackling new challenges.
Further work will be needed to restore the banking sector’s reputation, but combating money laundering is sure to pay off in the long term, the head of the banking association said.
Liepina also noted that the risk reduction measures have caused an outflow of nonresident deposits but that resident deposits have continued to grow in Latvian banks at roughly the same rate as last year, or by 8 percent.
“In the long-term perspective, the Latvian financial sector is focusing on the European market, with a very strong focus on digital solutions and their accessibility,” Liepina said.
At the end of July, the Association of Latvian Commercial Banks announced that reflecting the development of the finance industry and growing cooperation between participants in the sector, as well as the sustained creation of innovations in financial technology, the association has expanded its activities and become the Finance Latvia Association.