[ad_1]
He pointed out that local deposits with Latvian banks currently rise to 12.5 billion euros, while the rest – 5.1 billion euros. At the present time, the total amount of ABLV Bank deposits that will be owed and other amounts that may still flow from the rest of the banking sector is known, therefore, in the fall, non-bank deposits Latvians will rise to 3.5 billion euros.
It is a complication of our banks, because in the short term we have to make sure that, in a limited time, the fact that Latvia has left almost ten billion dollars … The banks can not solve this type of problem, and non-resident banks must also maintain additional liquidity and additional capital. Now, it was all that could be done and the financial sector could cope with the tasks, "Putnins said.
He added that basically the money of foreign customers was coming out of banks after the banking initiative, rather than the wishes of their customers. "We are aware that this clientele does not want to leave Latvia, which means that we all need to know that I am not convinced that it has been easy in every case," said Putnins.
He also noted that the changes in the banking sector that take place "ABLV Bank" are more important than the case with ABLV Bank. "We are currently witnessing a rather historic phase when the fundamentals of the banking system have developed over the last 25 years [Tas attiecas uz to] with which the majority of Latvian banks have worked with monetary type clients, with economic models. it should not be forgotten that this was not originally in Latvia: the whole tradition of serving Eastern customers, established in Latvia in the early 90s, and the first licenses received at the Soviet era, will obviously change.The president of the FCMC
said that the ban on the service of the fictitious companies is only a specific part of the customers: the banks do not close only the accounts of shell companies, as required by law, but the clientele is also cleansed by nature.First of all, it refers to CIS customers.
"We undertake this process with the requirement of recycled business plans, and the deadline for submission of the third final and revised version was June 30th. In evaluating these business plans, these plans will be used in general risk badessments, where one of the sections is the badessment of the business plan. Overall badessment, we will also determine the final capital requirement for the banks. The business plan, with respect to future capital, will play a very important role. The new business plans must already reflect the appetite for bank risk and we will evaluate to what extent our recommendations and the general position in the country regarding the reduction of the post-Soviet customer space have have been taken into account, but not the Baltic States, "said Putniņš
. stressed that Latvia Therefore, investments in this region are expected and, in certain circumstances, an increase in deposits of the EU is even desirable, as a kind of substitution of liabilities of balance sheets of banks will have to take place.
"There will definitely be some local market redistribution of customers. To a certain extent, the deposits will also be replaced and the EU clientele in the deposit portfolios will definitely increase. This is not bad because the terms structure will change. They will no longer be demand deposits, which are usually deposited in accounts for overnight transactions. Most EU customers mean term deposits for half a year, one year, two years. If we go back to the conventional deposits, this will allow the banks to use another business model, not in the context of commercial operations, but in the context of loans, securities transactions. It will be different from before. Of course, there will be other risks. Additional attention will be paid to credit risk and market risk. But banks will have to be ready to hold capital for savings, "said Mr. Putnins.
He also pointed out that business plans are not a formal description – that's all. is a crippled forecast of what the banks will do, who will be the clients, etc. a detailed document, and before we say yes, we have to make sure that it is true, if the plans are realistic. It is necessary to provide these plans with sufficient profitability.There will be no profitability because of the previous business model.At the same time, profitability was already known and even quite significant in terms of revenue. We want to see good returns, but in the normal range.We are aware of the difficulties that banks will have to overcome, but we would not want to see losses and uncertainty, "said Putnins.
He adds that all banks have submitted business plans and that the next two months will be devoted to their badessment. We must also give our vision to the bank owners if we do not like anything. If the plans do not work in the future, other problems will have to be solved. Therefore, we must work not only with the ABLV liquidation plan, but also with the business plans of the banks that operate, "said Mr. Putnins. pointed out that there are two options. "Yes, yes, there are overlapping things and directions, for example, e-commerce, the attraction of deposits from the wealthy countries of the euro zone, the activities on the domestic market, loans. overlaps, and it's normal, because it's a reality to work.This is not a bad thing.At the same time, there are also known niches.There are some banks in the domestic market, will try not to come and maintain a service profile to foreign customers, but to move from the CIS to other jurisdictions.That is also true, as long as we are talking about geographical areas to According to Putnins,
while talking about the possibilities for Latvian banks to attract EU customers, the FCMC president said that in this case, it is to know how customers are doing "For a typical business, when banks are doing cross-border business o u open branches abroad, and then expect customers to come to see them, chances are low. There is a reputation and other circumstances that can hinder it. However, there are deposit platforms, where customers are little interested in reputation issues, and the basic incentive is profitability, "said Mr. Putnins
. The task of the CFMC is to check if the banks are able to provide the respective rates. In the past, we have struggled to accept the fact that unjustified rates were available in the domestic market. We will monitor that. Therefore, business plans are also necessary, "said Putniņš.
Source link
