Latvia has been the worst-hit of the three Baltic states following the global credit squeeze and economic slowdown. Bank of Latvia governor Ilmars Rimsevics tells Lara Williams how policy makers are responding to the challenges.

While Latvia has not been immune to the effects of the global economic downturn, it is keenly positioned to attract investors into the country when things pick up, says Olyga Ertuganove, senior analyst at Latvijas Krãjbanka.

Without an injection of millions of euros from the international banking community, Parex Bank would have gone under last November. But just six months on, Robert Anderson reports on Latvia's second largest bank's slow, but steady recovery.

Formed in 1992, Parex has seen off various crises to become Latvia’s second largest bank by selling itself as a channel into western Europe for Russian investors. Robert Anderson reports.

Competition for market share is tightening in Latvia’s banking sector. Some institutions are seeking organic growth at home, others are looking abroad for expansion opportunities. James Hydzik reports.

Lateko Banka
Sergey Gusarov, Chairman of the board of the JSC

Ben Aris reports on the banking sector surge in Estonia, Latvia and Lithuania, spurred on by EU accession and foreign interest in the market.