Banks, EU – Baltic States, Financial Services, Latvia, Legislation
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Saturday, 20.04.2024, 18:37
Latvia's bank scandal highlights limits of Europe's banking supervision
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Jennifer McKeown, chief European economist at Capital Economics, said that the case highlights the lack of controls in the European banking system.
"What's worrying is that the Latvian central bank
may have missed this for one reason or another," McKeown said. "I
think it's bound to lead to a review of how oversight is carried out."
Mark Galeotti, a senior researcher at the Institute of International Relations Prague,
said that while European nations and institutions may want to bolster
regulations, they were likely to want to keep this scandal contained in the
short-term.
They don't want to punish Latvia too harshly at a time
when the country has been trying to clean up its financial sector, and other
countries aren't perfect either in the way they manage banking, he said.
Reports on global money laundering, like the so-called Laundromat leak of
documents in 2014, have shown how much of this money has flown through banks in
London and Frankfurt, Germany.
Whatever the merits of the Latvian investigation, he
said that the emphasis on transparency is a good thing.
"It's a sign of progress," he said.
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