Deposits in Latvian banks shrink by EUR 1.2 billion in March

RIGA - The total amount of deposits in Latvian banks shrank by EUR 1.209 billion over the past month, or 6.2 percent, to EUR 18.176 billion by March 28, the latest data from the Financial and Capital Market Commission (FCMC) shows.

The fastest reduction was recorded on March 1 when bank deposits dwindled by EUR 210.642 million. The banks also lost EUR 179.097 million worth of deposits on March 2, EUR 139.25 million on March 20, EUR 122.859 million on March 15, EUR 112.682 million on March 6, EUR 96.948 million on March 27, and EUR 80.135 million on March 26.

On March 14, the amount of bank deposits declined by just EUR 1.924 million, on March 7 by EUR 8.027 million and on March 23 by EUR 8.873 million.

At the end of February 2018, deposits in the Latvian banks were worth EUR 19.385 billion, down from EUR 20.397 billion at the beginning of February.

Earlier, FCMC head Peters Putnins told LETA that the proportion of the bank’s nonresident business should not exceed 5 percent. "That is the share of non-resident business Latvian banks should have now – around 5 percent. That is today our requirement, considering the changes in the global financial system and the national security aspects. Latvian banks should revise their strategies, develop different business models and look for new business niches. There is no other possibility. There is no time. It is important to be aware that non-resident business has always been a high-risk zone," he said.

The FCMC head also said that the total amount of deposits in the Latvian banks might decrease by an estimated EUR 4-5 billion as a result of severing ties with shell companies.