The Government of the Republic of Latvia founded the state-owned JSC "Mortgage and Land Bank of Latvia" (Mortgage Bank) on 19 March 1993 by order No 140 of the Cabinet of Ministers. At the moment the Mortgage Bank is the only 100% state-owned commercial bank.
The aims of the state-owned JSC "Mortgage and Land Bank of Latvia" and its legal status feature a certain similarity with the two state-owned banks functioning in the Republic of Latvia before the World War II: "Valsts Zemes banka" (State Land Bank) and "Latvijas Hipotēku banka" (Mortgage Bank of Latvia). The major tasks of these two banks were to finance the agrarian reform and grant long-term mortgage loans, mainly for financing of construction works. Due to its business niche and contribution to Latvia’s national economy the Mortgage Bank is to be considered the heir and successor of those two Latvian state-owned banks operating before the World War II. The name that was chosen for the Bank - "Latvijas Hipotēku un zemes banka" (Mortgage and Land Bank of Latvia), contains the names of both aforementioned banks, thus manifesting the founders’ intentions to continue their traditions.
To keep in pace with the development of the financial world the Mortgage Bank takes part in the life of the financial community actively. The Mortgage Bank is represented in the following local and international non-governmental institutions: the Association of Latvian Commercial Banks, Chamber of Commerce and Industry of Latvia, Farmers’ Federation of Latvia, Association of Organisations of Organic Farming of Latvia, Institute of Internal Auditors of Latvia, Association of Real Estate Valuators of Latvia, European Association of Public Banks, European Mortgage Federation (associate member), Network of European Institutions for SMEs, Club of Institutions of the EU Specialising in Long-term Credit.
The mission of the Mortgage bank is: in cooperation with its clients, assist them to implement their ideas and dreams, raise the welfare of clients and the bank itself by sharing the contribution into development of the national economy of Latvia.
The Mortgage bank has based its development strategy and operation on the following fundamental values: client satisfaction, continuous perfection, operation quality and efficiency, positive competitiveness, financial stability, long-term prospective, shared vision of future, teamwork, employee recognition, satisfaction and health, improvement of the bank.
Now the Bank has 29 branches, one in each district centre and 9 sub-branches situated in various regions of Latvia that provide for the servicing of the customers in the whole country. The Bank improves and modernizes its branches continuously.