Non-bank consumer crediting trends in Latvia
2017
Mazure, G., Latvia Univ. of Agriculture, Jelgava (Latvia)
Non-bank crediting has become popular in Latvia as well as in other European countries due to various economic and social factors. Since the banks in recent years have introduced much stricter lending conditions, non-bank crediting sector has experienced a significant increase not only in Latvia but also in other European and world countries. Non-bank crediting market actively began to develop through a wide promotion of consumer credits in the major mass media; thus, creating human interest in the availability of fast and easy processable credits. Non-bank credit companies without customer deposits have transformed the present credit market, since a number of new players entered the market testing new business and crediting models and providing solutions to credit-challenged customers. The research aim is to study the non-bank consumer crediting trends in Latvia and it employs a monographic descriptive method as well as the methods of analysis and synthesis and graphics. The research results demonstrate that the popularity of non-bank credits is still growing among consumers, since the total amounts of non-bank credits disbursed for the first time have increased by EUR 116.61 million or 33.18% for the period 2012-2015 with distance credits being the most demanded credit type accounting for approximately 40% of all non-bank credits. Non-bank credit market is saturated and there is a fierce competition between non-bank crediting companies in terms of interest rates, crediting conditions and other factors.
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