Purpose - The article looks at growth strategies for the banking industry, comments on the subprime mortgage crisis and why banks have failed, and what is the way out. It is also look to explore the intellectual and structural capital impact on the financial performance of Latvian Commercial banks. Finally it encourages the need for a new long term win-win approach that replaces the current short term strategies that have failed for the banking sector. Design/methodology/approach - The author have used exploratory analysis was done to first determine the intellectual, structural and relationship capital performance in banks; the second with an interpretative analysis, to examine the relationship between the above-mentioned producers; and third was considered in banks' financial performance. Findings – The author have found that despite the intellectual capital and value creation, the study show that a lack of evidence of a link between the intellectual and structural capital indicators as dependent variables, except for sales growth. Reserch limitations/implications – Comparatively few studies have been done on the need to develop a new model for the banking sector. Also banks and financial institutions are reluctant to give out much strategic and other information for analytical purposes. Even fewer give interviews explaining their strategy and business model. Orginality/value – The study showed that the intellectual and structural capital model of Latvian Commercial banks is a new and unusual practice. Taking a portfolio, being agile and institutionalizing an innovation management system and culture will help in creating success.