Non-bank Lending Supervision Reform Stalls in Latvian Government

The long-running debate over the supervision of non-bank lenders has hit a standstill in the corridors of power. No final decision has been made on whether the Consumer Rights Protection Centre (PTAC) or the Bank of Latvia should take over the oversight of this financial sector.

The previous government actively pushed for transferring this responsibility to the Bank of Latvia. However, the new Cabinet of Ministers decided to pause the process during its first weeks in office, temporarily halting any decision. Officials, however, stress that the plan has not been abandoned entirely – the necessary legislative changes will be submitted to the Saeima for consideration.

In the meantime, the non-bank lending market, which exceeds one billion euros annually, continues to be supervised by PTAC. This institution is also responsible for monitoring the safety and quality of consumer goods, including toys, clothing, and footwear.