- The Latvian banking industry’s ROA and ROE are above the EU average, and the efficiency ratio (cost to income ratio) is among the best across the EU. Banks’ capital adequacy and liquidity indicators are significantly above minimum requirements.
- For the second consecutive year, the total lending volume for Latvian banks increased, as the loan portfolio grew by 3.1% or 452 million EUR over the year, reaching 15.1 billion EUR in total.
- Review of the client base continued in 2016, resulting in overall reduction in number of clients served by banks focusing on international clients and a corresponding drop in deposit volumes and assets for these banks and the sector as a whole.
- Client behavior continues to change, as the number of internet banking users reached 1.4 million, and the number of mobile banking application users reached 269,000 (the number of mobile banking application users rose by 56%in 2016).
- The move to reduce usage of cash in daily transactions has continued, as banks have installed over 41,000 payment card terminals (POS). The number of purchases made using payment cards increased by 13.5%, as clients made 243 billion purchases with payment cards worth par 4.6 billion EUR during the year.
- Banks have modernized their ATM networks by installing the latest combined cash deposit/withdrawal models, resulting in a slight drop in the total number of ATMs for the year, providing 1,018 ATMs with withdrawal functions and 327 with cash deposit functions.
For more detailed information about the sector, see the Financial and Capital Market Commission website.
About the Association of Latvian Commercial Banks
The Association of Latvian Commercial Banks represents the Latvian banking sector with 30 billion EUR in assets, 2.24 million clients and 9,000 employees. The banks observe the highest operating standards and provide modern, diverse financial services to a broad range of clients both remotely and onsite, stimulating the economy with 15 billion EUR in loans.
Founded on 23 July 1992, the Association of Latvian Commercial Banks is one of the oldest business organizations in Latvia. Its objective is to create an attractive environment in Latvia for business and financial services and to encourage economic growth.