Most banks proved able to withstand the external shock and re-orient their investment and lending policies rapidly. The first 9 months of 1999 witnessed stable growth of 10% to 15% in all major banking indicators (assets, equity, deposits and credits). The total profit of the Latvian banking industry reached Lats 17 million in the first three quarters of 1999.
Bank lending Development has been most pronounced in the area of bank lending, and it has continued despite the Russian crisis. The remarkable increase in bank lending was not accompanied by deterioration of credit portfolios - on the contrary, the quality of bank assets has improved considerably since 1996.