In Latvia’s banking sector, the level of caution remains excessive in certain areas, said the governor of the Bank of Latvia Mārtiņš Kazāks in an interview to LTV programme Rīta panorāma on Monday, the 29th of January.
At the same time, he stressed that the main objective of the Bank of Latvia for this year is making sure the banking sector becomes friendlier towards honest clients.
“In certain areas the level of caution is still too high. This year we will be doing everything possible to lower it. This is to make sure honest clients’ lives are not made more difficult for no reason,” said Kazāks.
He also said that banks should request from clients what they have to, not overextend and fear their own shadow.
The governor of the Bank of Latvia added that the echo from the crisis of 2018 is still felt in banking operations. However, Latvia’s institutional environment and banks’ own ability to assess and manage risks is much higher than it was five to six years ago.
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Bank of Latvia governor warns banks should not overextend and fear their own shadow
