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Economy and Banking Sector of Latvia

Financial System Development

Financial System
57.1, 85th out of 144 countries
Banks' Soundness
65.8, 74th out of 144 countries

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.

Financial Market Development in Latvia.

Chart 1. Financial Market Development in Latvia. Source: WEF.

Soundness of banks is scored 4.9 bringing Latvia into the 74th place.

Soundness of Banks in Latvia.

Chart 2. Soundness of Banks in Latvia. Source: WEF.

Further Information

Banking Focus

Banks in Latvia are mainly focused on the following areas:

  • savings and loans
  • retail and business banking
  • universal banking

Banking Supervision

Latvijas Banka

Banking Sector Structure

Number of Banks
Consolidated Assets (2019)
22,134.37 mln EUR  (-1.99%)
Recent Changes (2018)
new banks: 0, closed banks: 2

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.

Consolidated banking assets in Latvia.

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 Banks013000
Number of Closed Banks151432

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.

All the credit institutions operating in Latvia can be classified into several categories. Table 3 summarises the number of banks in each category.

CategoryNumber of Banks
Branches of foreign banks4
Central banks1
Credit unions34

Table 3. Number of banks by category in Latvia.

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 OriginNumber of Branches
EE Estonia2
FI Finland1
SE Sweden1

Table 4. Number of branches of foreign banks in Latvia grouped by country of origin.

Deposit Guarantee Scheme

Maximum Protected Amount
100,000 EUR

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:

  • if the depositor is eligible within the terms of the deposit guarantee scheme;
  • if the depositor's bank is a participant in the deposit guarantee scheme;
  • if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Latvia are summarised in Table 5.

Maximum Protected Amount
100,000 EUR
Scheme Participants
all credit institutions operating in Latvia
branches of non-EU banks
branches of Latvian banks abroad
Scheme Exemptions
branches of EU-banks (covered by their home countries)
Eligible Depositors
natural persons
  • residents of Latvia
  • citizens of Latvia
  • foreign residents
  • foreign citizens
legal entities
  • registered in Latvia
  • registered abroad
Covered Accounts
current account balance
salary accounts
savings accounts
Paid In Currency

Table 5. Deposit guarantee scheme in Latvia.

Further Information

Country Ceiling for Deposits

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)
Aaa (prime)
Foreign Currency
Aaa (prime)

Local currency (Euro) deposit ceiling for Latvia is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).

Deposit Rates

Average Deposit Rate (Mar 2020, EUR)
0.43 %  (Feb 2020: 0.30 %)
In March 2020, an agreed annualised deposit rate in local currency (Euro) of new contracts with agreed maturity up to 1 year between credit institutions and households was 0.43% which was above the Euro Area average (0.31%).
Deposit Rates in Latvia.

Chart 4. Deposit Rates in Latvia. Source: ECB.

Further Information