Loan Portfolio Quality Management: Latvian Banking Sector

The aim of this study is to identify factors that significantly affect the share of non-performing loans in the structure of the loan portfolio in the Latvian commercial banks, as the stage of creating a model of loan portfolio quality management. The main method used in this study - a content analysis of the scientific and business literature, analysis of studies conducted by international organizations. The content analysis has determined nine factors that have a significant influence on the loan portfolio quality of Latvian commercial banks. They are: unemployment rate, level of incomes, gross domestic product, inflation, interbank interest rates, the level of real estate market development, banking legislation, the degree of credit risk management in a bank, the share of loans in bank assets