Latvijas Banka expresses concerns over OTP Bank acquisition of Luminor

Latvijas Banka President Mārtiņš Kazāks has expressed concerns regarding the proposed acquisition of Estonia-registered Luminor Bank by Hungary-based OTP Bank. Kazāks noted that while the transaction is still in the process stage, the central bank will provide its opinion on the matter.

A primary concern cited is OTP Bank’s active presence and service provision in the Russian market. Kazāks stated that this factor will be a key element in the evaluation process. While noting the need for increased activity and competition within the financial sector, he emphasized the risks associated with OTP Bank’s recent operations in Russia.

The final decision rests with the Estonian Financial Supervision Authority and the European Central Bank (ECB), as Luminor Bank is a systemic bank under ECB supervision. The acquisition agreement involves a consortium managed by the US investment firm Blackstone and DNB Bank.