Estonian branch of Parex Bank continues usual activities
The decision by the Latvian government to acquire 51% of the shares of Parex Bank means that the bank and its branches will continue their usual activities under the ownership of the government.
Branches of the bank operating in Estonia are subject to supervision by the supervisory institutions of their home country. The Estonian branch of Parex Bank is subject to supervision carried out by the Latvian financial supervision commission. Under the co-operation agreement concluded with Latvian financial supervision, Estonian financial supervision exchanges information and, if necessary, carries out supervisory proceedings.
At the end of September, the market share of the Estonian branch of Parex Bank in the Estonian banking market was, according to the volume of assets, 0.53%. The Estonian banking system, which is entirely integrated with the banking market and banking groups of the Nordic countries, is trustworthy and strong; banks are solid and adequacy of capital is high.