Saeima Approves Inclusion of Non-Bank Consumer Lenders in Unified Financial Sector Supervision

17.09.2026.

Information for the media Supervision news

Today, September 17, the Saeima approved 13 bills at the third – final – reading regarding the inclusion of non-bank consumer lenders in the unified financial sector supervision. These changes will reduce fragmentation, allow for more targeted use of state resources, and reduce bureaucracy. At the same time, they will strengthen the protection of the rights of financial service recipients – consumers – and ensure fair competitive conditions in non-bank consumer lending and the financial sector.

Santa PurgaileDeputy Governor of the Bank of Latvia

"The non-bank consumer lending segment is growing rapidly, which means that risks will also increase in the future, which must be skillfully supervised and managed. In most European countries, there is exactly such an – integrated and centralized – supervision model, which is carried out by the financial sector supervisory authority in 17 countries. The Bank of Latvia, by supervising non-bank consumer lenders, will implement a systemic approach, rather than focusing on complaints and violations when they have already occurred and consumers have suffered."

The bills provide that, starting from January 1, 2027, the Bank of Latvia will take over from the Centre for Consumer Rights Protection the licensing and supervision of non-bank consumer lenders and the consumer rights protection functions for the entire financial sector, as well as the supervision of unfair commercial practices and advertising with regard to services provided by financial market participants.

As a result of the reform, from January 1, 2027, 38 non-bank consumer credit service providers and 36 credit intermediaries and their representatives will come under the supervision of the Bank of Latvia, in addition to approximately 200 other existing financial market participants, and from November 20, 2026 – also deferred payment service providers.

By January 1, 2028, the previous approach to the supervision of the non-bank consumer lending segment will be refined, and the Bank of Latvia, in cooperation with the Fintech Latvia Association and market participants, will prepare the necessary regulations of the Bank of Latvia, thereby ensuring a smooth transition and a reasonable period for the implementation of changes.

Consolidation of the supervision of financial sector market participants: 1) supervision costs, which are covered by companies in this sector, will be reduced; 2) fragmentation will be reduced, so it will be easier for consumers to defend their rights, and for entrepreneurs, the business environment will be clearer; 3) more effective representation in international assessments and organizations will be ensured, as there will be one supervision model and one responsible institution.

The Bank of Latvia confirms that the focus on the protection of consumer rights will not decrease, and the functions of consumer rights protection in the financial sector will be taken over and performed in full, carefully delving into the issues, evaluating applications, and providing proposals for the improvement of regulations.

The Bank of Latvia, in implementing the decision of the Saeima, hopes for constructive cooperation with the Centre for Consumer Rights Protection, the Ministry of Economics, the Fintech Latvia Association, the Latvian Association for the Protection of Consumer Interests, and the Latvian Credit Borrowers Association.