Local Capital Banks Confirm Their Readiness to Ramp Up Lending to the National Economy
On 9 October, the Finance Latvia Association held a media breakfast devoted to the transformation of business models of local capital banks, their position in the financial market and their contribution to the Latvian economy.
The media breakfast was attended by Dmitrijs Latiševs, Chairman of the Management Board of BlueOrange Bank, member of the Council of the Finance Latvia Association; Viktors Bolbats, Chairman of the Management Board of Baltic International Bank, Co-Chair of the Strategic Development Committee of the Finance Latvia Association; Roberts Idelsons, Chairman of the Management Board of Signet Bank; Jānis Brazovskis, member of the Management Board of the Finance Latvia Association.
Viktors Bolbats, Chairman of the Management Board of Baltic International Bank, Co-Chair of the Strategic Development Committee, highlighted the demand for services provided by local capital banks in both the domestic and international markets. He informed about the possibilities of local capital banks to lend more than 220 million euro to the Latvian economy in 2020.
The local banking business is a significant part of the Latvian economy. Working in a local business environment allows them to have a good understanding of the community and entrepreneurs, being closely linked to the national economy. These banks focus on long-term preservation of wealth; they are responsible, predictable and, at the same time, flexible, as in many cases local capital banks have the opportunity to evaluate transactions beyond standards and have more time to delve deeper into customers’ individual needs.
During the event, Dmitrijs Latiševs, Chairman of the Management Board of BlueOrange Bank, member of the Council of the Finance Latvia Association, stressed that the transformation of local capital banks was to be considered as having taken place.
"Local capital banks have made a major change in their business in a very short period of time, revolutionizing and clearly defining new business goals. Each bank has found its niche in the financial market and, as practice shows, successfully serves Latvian and European entrepreneurs and individuals. Local banks create healthy competition in the market to the benefit of entrepreneurs," remarked Latiševs.
Roberts Idelsons, Chairman of the Management Board of Signet Bank, noted, “The current changes in the financial sector are considered a normal evolutionary process, which undoubtedly contributes to the restoration of the international reputation of the Latvian financial system. As a result of these processes, the Latvian economy gains additional financing opportunities, long-term predictability and increased competition in the financial sector.”
Participants of the media breakfast noted that major efforts were made in the area of risk mitigation in 2018: in line with today's requirements, banks completely abandoned high-risk customer service, invested significant resources in customer and business due diligence.
“To assist local businesses to get better access to financing and banking, it is crucial to continue a high-quality dialogue between banks and regulators on future supervision principles and methodology, which should be based on adequate and appropriate risk assessment,” emphasized Idelsons.
Participants of the media breakfast agreed that local capital banks are strong players in the market, which, along with other financial institutions, provide financing for the healthy and sustainable development and growth of local businesses. In the future, their role is expected to grow and strengthen, contributing to the Latvian economy. An active dialogue of local capital banks within the Finance Latvia Association and a dialogue with public authorities strengthens the Latvian banking sector and reputation.
About Local Capital Banks
The owners/shareholders of these banks are local entrepreneurs whose business is related to the Latvian market. Local capital banks in Latvia, members of the Finance Latvia Association are Blue Orange Bank, Baltic International Bank, Signet Bank, LPB Bank and Meridian Trade Bank.