The Prime Minister expects more bank risk appetite in lending / day
The Ministry of Finance informed LETA that a meeting of the Financial Sector Development Council was held on Tuesday, which discussed issues related to the development of the lending environment to strengthen the competitiveness of the economy.
The meeting evaluated current data on lending trends and analyzed the impact of amendments to the law on the possibilities of re -crediting of natural persons. A discussion was also launched on possible future action on the regulation of refinancing of legal entities.
« My goal is to reduce bureaucracy and promote economic activity. At the moment, lending volumes are increasing – it is easier for people and companies to access funding. This means that the government’s targeted job brings results, » Silina said.
Among them, she mentioned that they have facilitated requirements for natural persons, as well as a refinancing regulation, and the next step would be to relieve legal entities.
« I expect a greater risk appetite from the banks, bolder decisions and a desire to be ahead of the development of digital euro and cryptocurrency.
At the meeting, the Bank of Latvia gave an overview of the current situation in lending, with a particular emphasis on trends regarding re -credit.
The Bank of Latvia presented the latest indicators of lending activity.
Summarized data show that in the fourth quarter of 2024 and in the first quarter of this year, lending in Latvia reached the fifth highest non -financial loan portfolio’s annual growth in the eurozone. On the other hand, the increase in the loan portfolio in times of economic stagnation exceeded the rate of economic growth, reaching 29.3% of gross domestic product (GDP). In turn, the increase in lending in the company sector exceeded 8% per annum.
At the meeting, the Ministry of Economics informed about the measures taken to improve the construction process to facilitate the development of investment projects and to promote more dynamic lending.
There were also issues related to possible solutions to further action in the area of legal entities to refinance in order to promote competition between lenders. Overall, it has been concluded that such a step, as in the field of lending to natural persons, would make a positive contribution to the economic operators, informs the ministry.
During the discussions, the Latvian Financial Sector Association’s view of the lending environment and the development of lending in Latvia were also heard, and proposals and subsequent steps to improve business mobility opportunities are expected from the banks in the near future.
At the meeting of the Financial Sector Development Council, the European Council of Europe was also discussed at the end of the previous working week in the Money Laundering and Terrorist Financing Prevention Expert Committee « Moneyval » and the Common Plenary Session of the Financial Transaction Task Force (FATF), which adopted Latvia’s sixth -stage mutual assessment report. Latvia became the first country appreciated by the new, revised FATF methodology.
« We have eliminated high financial risks, and Latvia is a safe and reliable public investment. This is also evidenced by Latvia’s choice to be among the first countries that are evaluated by the new FATF standards, » Silina points out.
In accordance with the regulations of the Financial Sector Development Council, members of the Financial Sector Development Council are Prime Minister (Chairman of the Council), Minister of Economy, Foreign Minister, Minister of the Interior, Minister of Finance, Minister of Justice, Prosecutor General, Chief of the Bank of Latvia, Chairman of the Board of the Latvian Financial Industry Association Head of the Association of « Fintech Latvija » and president of the Latvian Employers’ Confederation.
