Today, Latvia has a modern and dynamic economy, again occupying an important position in European trade, having achieved a remarkable transition towards a successful market economy after gaining independence in 1991. Trade and finance have always gone hand in hand. Therefore, it is no surprise that just as the Latvian economy has undergone an impressive transformation, so too has the Latvian financial system.
Latvia has made substantial progress in the development of its financial structure and has created the institutional and legal frameworks necessary to support a market-oriented financial system.1 Today, its financial markets are developing rapidly in new directions and are providing valuable services to both households and the corporate sector, underpinning the functioning of a modern high-growth economy.