The Latvian government is moving forward with a proposal from the Ministry of Finance which aims to consolidate the supervision of non-bank creditors under the Bank of Latvia. Currently, the oversight is fragmented among three institutions: the Bank of Latvia, the Consumer Rights Protection Centre, and the State Revenue Service. This fragmentation leads to inefficiencies and unnecessary administrative burdens.

Concerns regarding the proposal were raised by ministers from the Union of Greens and Farmers, expressing skepticism about the feasibility and timing of the changes. The government meeting indicated that while the initial implementation was planned for 2027, it may now be pushed to 2028 to allow for a more thorough transition. Ultimately, the draft legislation will be passed to the Saeima, Latvia's parliament, for further examination and approval.

The goal of this proposed reform is not only to simplify the supervisory framework but to ensure that financial and human resources are utilized more effectively. The Ministry of Finance believes that this consolidation will provide a clearer oversight structure for non-bank creditors, which is essential for consumer protection and possible future regulatory measures in the financial sector. The outcome of these discussions and legislative processes will be pivotal for the future of credit regulation in Latvia.