Bank of Latvia raises concerns over OTP Bank's planned acquisition of Luminor Bank
Bank of Latvia Governor Mārtiņš Kazāks said the central bank will voice concerns about Hungary's OTP Bank seeking to acquire Estonia's Luminor Bank, though the final decision rests with Estonia's banking regulator and the European Central Bank.
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Bank of Latvia Governor Mārtiņš Kazāks said on Friday, in an interview with TV3's programme "900 sekundes," that the central bank intends to express concerns regarding a potential deal in which Hungary's OTP Bank seeks to acquire Estonia's Luminor Bank.
Kazāks pointed out that the concern stems from OTP Bank's active operations in the Russian market, which raises questions about the deal's suitability given the current geopolitical situation.
Decision rests with other authorities
The Bank of Latvia governor emphasized that while his institution will voice its position, the final decision on approving the transaction does not lie with the Bank of Latvia. That decision will be made by Estonia's banking supervisory authority together with the European Central Bank (ECB), as they hold the authority to approve or reject such financial transactions in the Baltic region.
Luminor Bank operates across all three Baltic states, meaning any change in its ownership structure could potentially affect the entire region's financial market, not just Estonia.
