According to World Economic Forum's Global Competitiveness Report 2019, financial market development in Latvia is scored 57.1 out of maximum 100.0 and ranked 85th out of 144 analysed economies.
Chart 1. Financial Market Development in Latvia. Source: WEF.
Soundness of banks is scored 4.9 bringing Latvia into the 74th place.
Chart 2. Soundness of Banks in Latvia. Source: WEF.
Banks in Latvia are mainly focused on the following areas:
Currently there are 52 credit institutions operating in Latvia.
In 2019 consolidated banking assets in Latvia were 22,134.37 mln EUR. The consolidated banking assets' evolution is shown at Chart 3 below.
Chart 3. Consolidated banking assets in Latvia.
Recent structural changes (2013 - 2018) of the banking sector of Latvia are summarised in Table 1.
|Number of Opened Banks||0||1||3||0||0||0|
|Number of Closed Banks||1||5||1||4||3||2|
Table 1. Recent structural changes in the banking sector of Latvia.
The list of the most recently opened banks in Latvia is provided in Table 2.
|Rīgas kooperatīvā krājaizdevu sabiedrība||October 2015|
|Kooperatīvā krājaizdevu sabiedrība "Latvijas lauksaimnieku krājaizdevu sabiedrība"||July 2015|
|AS LHV Pank Latvijas filiāle||February 2015|
|Nordea Bank AB Latvijas filiāle||February 2014|
Table 2. The most recently opened banks in Latvia.
All the credit institutions operating in Latvia can be classified into several categories. Table 3 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||4|
There are 4 branches of foreign banks from 3 different countries in Latvia. Table 4 shows the number of branches grouped by the country of origin.
|Country of Origin||Number of Branches|
Deposit guarantee scheme is a financial stability mechanism implemented in many countries to protect bank depositors against the loss of their deposits in the case when a bank is unable to meet its obligations to depositors by compensating certain deposits held by depositors of the bank. This compensation is paid out from the contributions which banks have made into a deposit guarantee fund.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Latvia are summarised in Table 5.
Table 5. Deposit guarantee scheme in Latvia.
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Euro) deposit ceiling for Latvia is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Chart 4. Deposit Rates in Latvia. Source: ECB.