Banks, Financial Services, Latvia

She explained that banks working in Latvia can be divided into two groups - those who have mostly focused on serving domestic customers, and those, about ten banks, that earlier served non-resident customers but now are in a process of transformation.

"Among these ten banks, there are such that are successful in the transformation of their business model and might join the first group in spring, but there are still others who are not doing well," she said.

The reason for it is that some banks are not clear about their future business niche or it is difficult for them to attract additional capital to start lending. Also, there are banks who do not want to give up their high-risk customers.

"Even if these banks face any problems, their impact on the society and economy in general is insignificant," said Purgaile.