Residential Mortgages are Priciest in the Eurozone, as Bank Earnings Continue to Rise Consistently.

The significant profit of banks in the last year has raised questions not only in Latvia, because it is clear that, similar to energy industry companies, which last year had record profits due to the geopolitical situation, the question is how much of the profit is the result of the company’s own actions and decisions, but how much – under the influence of factors independent of them. It is estimated that this year the “surplus profit” of commercial banks operating in the Eurozone could be as much as 70 billion euros.

Several countries have already come up with a solution – the excess profit tax. It has already been implemented in Hungary, Spain, Croatia, the Czech Republic, and is expected to be implemented in our neighboring country, Lithuania, in relation to banks.