Mārtiņš Kazāks

Foreword

We can look back on 2025 with a strong sense of accomplishment. It is becoming increasingly clear that the integration of the Financial and Capital Market Commission into Latvijas Banka was a strategically sound decision. Significant improvements have been achieved both in lending and in the accessibility of financial services, and similar consolidation of other financial sector institutions would also yield tangible benefits elsewhere in the sector. As the legend goes, Riga is never truly finished, and we too will continue persistently improving the financial sector, modernising it and strengthening its resilience.

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Latvijas Banka in 2025

Inflation
Average annual inflation close to the target
Lending is becoming more active
Lending has become a driver of economic growth: double-digit annual growth rate of lending in December
Mortgage loans
The refinancing initiative has helped reduce loan interest rates by approximately 0.5 percentage points
Settlement system
Latvijas Banka's settlement system is open to direct participation by payment institutions and electronic money institutions (25 connections, including 9 foreign connections)
Public trust
68% of the population believes that Latvijas Banka operates professionally
Positive MONEYVAL report
Internationally recognised progress in financial security
EUR 56 million
A total of EUR 56 million has been appropriated to the state budget for 2025
Financial gains increased
Total recognised gains of Latvijas Banka increased by 55%, amounting to EUR 332 million

Areas of activity