Financial Sector Assessment : Republic of Latvia

Latvia has a well-developed financial sector, but in the aftermath of the 2008-09 global financial crisis, access to finance has become a major constraint for the development of private enterprises. Credit to the private sector in Latvia, at above...

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Bibliographic Details
Main Author:	World Bank
Format:	Financial Sector Assessment Program (FSAP)
Language:	English en_US
Published:	Washington, DC 2013
Subjects:	ACCESS TO FINANCING ACCOUNTING ACCOUNTS RECEIVABLE AMOUNT OF CAPITAL ARBITRATION ARREARS AUCTION AUCTIONS AVAILABILITY OF BANK FINANCING BAILIFF BAILIFFS BANK ACCOUNTS BANK BONDS BANK CREDIT BANK GUARANTEE BANK LENDERS BANK LENDING BANK LOANS BANKING SECTOR BANKING SYSTEM BENEFICIARIES BOND BOND MARKETS BONDS BROKERAGE CAPITAL ADEQUACY CAPITAL GAINS CAPITAL INVESTMENTS CAPITAL MARKET CAPITAL MARKETS CAPITALIZATION CASH FLOW CASH MANAGEMENT CENTRAL BANK CENTRAL BANKS CENTRAL DEPOSITORY CENTRAL SECURITIES DEPOSITORY CHECKING ACCOUNT COLLATERAL COLLATERAL REQUIREMENTS COLLATERALIZATION COMMERCIAL BANKS COMMERCIAL CREDIT COMMERCIAL LAW COMMERCIAL PLEDGE COMMERCIAL PLEDGES COMMERCIAL TERMS CONSUMER PROTECTION CORPORATE BONDS CORPORATE GOVERNANCE CREDIBILITY CREDIT APPRAISAL CREDIT CONSTRAINTS CREDIT DECISIONS CREDIT GROWTH CREDIT GUARANTEE CREDIT GUARANTEES CREDIT HISTORY CREDIT INFORMATION CREDIT INFORMATION REGISTRY CREDIT INSTITUTIONS CREDIT MARKET CREDIT SCORING CREDIT UNION CREDIT UNIONS CREDITOR CREDITOR RIGHTS CREDITORS CREDITWORTHINESS CURRENCY CURRENCY BOARD CURRENCY RISK DEBT DEBT ISSUANCE DEBTOR DEBTORS DEBTS DEED DEEDS DEMAND FOR CREDIT DEPOSIT DEPOSIT INSURANCE DEPOSITOR DEPOSITORS DEPOSITS DOMESTIC BONDS DOMESTIC CAPITAL DOMESTIC CAPITAL MARKET DOMESTIC CAPITAL MARKETS DOMESTIC MARKET DUE DILIGENCE ENFORCEMENT PROCESSES EQUIPMENT EQUITY FINANCING EQUITY INSTRUMENTS EXCHANGE RATE EXPORT GROWTH EXPORTERS FINANCIAL CRISIS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MARKETS FINANCIAL SECTOR DEVELOPMENT FIXED ASSET FIXED INCOME FIXED INCOME PORTFOLIO FORECLOSURE FOREIGN BANK FOREIGN BANKS FOREIGN FINANCING FOREIGN INVESTORS FRAUD FUND MANAGERS GOVERNMENT SUPPORT HOST COUNTRIES IMMOVABLE ASSETS INDIVIDUAL INVESTORS INSTITUTIONAL CAPACITY INSTITUTIONAL INVESTOR INSTITUTIONAL INVESTORS INSURANCE COMPANIES INTEREST RATES INTERNATIONAL CREDIT INVESTING INVESTMENT FUND INVESTMENT FUNDS INVESTMENT REGULATION INVESTOR BASE ISSUANCES LACK OF COLLATERAL LEGAL ENVIRONMENT LEGAL FRAMEWORK LEGAL PROTECTION LEGAL REFORMS LEGAL SYSTEM LENDERS LINE OF CREDIT LIQUIDATION LIQUIDATIONS LOAN LOAN AMOUNT LOAN APPLICATIONS LOAN GUARANTEE LOAN PORTFOLIO LOAN PORTFOLIOS LOAN SIZE LOCAL BANK LOCAL CURRENCY LOCAL DEBT LOCAL MARKET LONG-TERM CAPITAL MARKET CONDITIONS MARKET CONFIDENCE MARKET DISTORTIONS MARKET INFRASTRUCTURE MARKET LIQUIDITY MARKET PARTICIPANTS MARKET SHARE MATURITIES MICRO ENTERPRISE MICRO ENTERPRISES MICROENTERPRISES MICROFINANCE MICROFINANCE INSTITUTIONS MONEY LENDERS MONEYLENDERS MORTGAGE MOVABLE ASSETS NON-PERFORMING LOANS NPL OPEN ECONOMY PARTIAL CREDIT PAYMENT SYSTEM PAYMENT SYSTEMS PENSION PENSION FUND PENSION FUNDS PENSION SYSTEM PERSONAL GUARANTEES PORTFOLIO PORTFOLIO VALUATION PRIVATE BANKS PRIVATE CREDIT PRIVATE CREDIT BUREAU PRIVATE CREDIT BUREAUS PRIVATE EQUITY PRIVATE FINANCIAL INSTITUTIONS PRIVATE INVESTMENT PRIVATE LENDERS PRIVATE PROPERTY PROPERTY RIGHTS PUBLIC FUNDS PUBLIC REGISTRY REGISTRATION SYSTEM REGULATORY FRAMEWORK RELIANCE ON COLLATERAL REPOSSESSION RESERVES RESIDENTIAL MORTGAGES RETURN RETURN ON ASSETS RETURNS RISK AVERSION RISK MANAGEMENT RISK OF DEFAULT SECURITIES SECURITIES LAW SECURITIES LAWS SECURITY INTEREST SECURITY INTERESTS SETTLEMENT SETTLEMENT SYSTEMS SHORT MATURITY SMALL BUSINESS SOVEREIGN RATING STATE BANKS STOCK EXCHANGE STOCK EXCHANGES STOCK MARKET STOCK MARKETS STOCKS STRATEGIC INVESTORS SUPPLY OF CREDIT TAX TAX REGIME TERRORISM TRADE CREDIT TRADING TRANSACTION TRANSPARENCY TURNOVER VARIABLE RATES WITHDRAWAL WORKING CAPITAL
Online Access:	http://documents.worldbank.org/curated/en/2012/06/16473138/latvia-financial-sector-assessment http://hdl.handle.net/10986/15911

Description
Summary:	Latvia has a well-developed financial sector, but in the aftermath of the 2008-09 global financial crisis, access to finance has become a major constraint for the development of private enterprises. Credit to the private sector in Latvia, at above 100 percent of Gross Domestic Product, or GDP, is one of the highest in Eastern Europe, after significant growth over the last decade. However, in the aftermath of the 2008-09 financial crisis, credit growth has been negative (average annual growth of -7 percent between FY2009-2011) and access to finance has become one of the most significant obstacles for growth according to enterprises (close to 30 percent of firms identify it as an obstacle in 2009, versus 2 percent before the crisis). This contributed to a significant decline in the volume of private investment, which dropped by 48 percent between 2008 and 2010. Credit constraints are more severe in specific segments, including smaller firms. In response to these challenges, the Government has supported credit to the private sector through various instruments, some of which may need to be reviewed. Support has been provided through various financial instruments aimed at enhancing the accessibility and affordability of credit and implemented trough public bodies and commercial financial intermediaries. It will also be important to ensure the programs create adequate incentives for financial intermediaries to expand services to underserved markets in a sustainable manner, and that the programs lever the established capacity and expertise of robust commercial lenders, minimizing competition with such lenders.

Financial Sector Assessment : Republic of Latvia

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