Slow Progress on Fast Credit Supervision Reform – PTAC Continues, Bank of Latvia Awaits
Last year, over one billion euros were issued in distance credits and non-bank loans, but discussions on transferring supervision from PTAC to the Bank of Latvia have stalled.
Loan Volume and Reform Hurdles
The Consumer Rights Protection Centre (PTAC) announced last week that in 2025, more than one billion euros were issued in distance credits, including so-called fast credits, leasing, and other non-bank loans. This figure highlights the sector's significance in Latvia's financial market.
Meanwhile, debates have been ongoing about whether supervision of this area should be transferred from PTAC to the Bank of Latvia. PTAC currently also oversees the quality of toys, clothing, and footwear, raising questions about the need for specialization.
The previous government was moving towards these changes, but the new Cabinet of Ministers decided to pause during its first weeks in office. This means the reform pace has slowed, and it is currently unclear when or if the supervision will be moved.
Industry representatives and experts suggest that centralized supervision under the Bank of Latvia could provide more effective control and reduce risks for consumers. However, for now, PTAC continues its duties, and discussions on the reform are ongoing.
