Latvian Financial Sector Association head: too many extra burdens have piled up

Uldis Cērps, chairman of the board of the Financial Sector Association (FNA), said in an interview with LETA that the outgoing parliament imposed several additional obligations on the financial sector and introduced a bank solidarity contribution, meaning the sector's regulatory and tax burden now needs to be reduced.

Crisis readiness after the August storm

Cērps noted Latvia has 94 so-called critical ATMs, a number set to rise to 106 soon, and that major retail, pharmacy and fuel chains have infrastructure allowing payments of up to 200 euros with Latvian-issued cards even when internet or phone networks are down. However, these solutions only work if there is electricity. The late-August storm revealed gaps in regulation, including unclear obligations for property owners renting space to critical ATMs to provide backup power, and the absence of a legal framework defining duties for critical service providers such as fuel, pharmacy and food retailers during crises. Cooperation with major retailers has so far relied on voluntary arrangements. Cērps also urged residents to prepare individually, for example by keeping cash, a generator or a battery-powered radio at home.

Solidarity levy and competitiveness

Discussing the bank solidarity contribution, in place for two years, Cērps said the European Central Bank and the International Monetary Fund had both warned against such taxes. Banks paid 74 million euros under the levy in 2025 and 40 million euros so far this year. He pointed out that neither Lithuania nor Estonia has a similar tax, which puts Latvia at a disadvantage since the largest banks' credit committees operate across all three Baltic states. The association hopes the levy on new loans could be scrapped as early as next year, with full abolition by 2028 as currently envisioned in policy documents.

Party election programs

The FNA has reviewed the election programs of parties likely to enter parliament, measuring them against 15 proposals the sector drafted covering taxation, reducing bureaucracy, capital market development and combating financial fraud. Cērps said some proposals were reflected in party platforms, but the association wants the financial sector to be treated as a strategic catalyst for the economy, with barriers to its effective operation removed.