Non-resident deposits in Latvian banks shrink 27.1% in Q1

RIGA - Non-resident deposits in Latvian banks shrank by 27.1 percent or EUR 2.185 billion in the first quarter of this year to EUR 5.869 billion at the end of March, the Finance and Capital Market Commission said.

According to the Latvian banking regulator, non-resident deposits accounted for 32.5 percent of total deposits at Latvian banks at the end of March 2018 which is the lowest level in the recent years. The share of non-resident deposits in Latvia was 39.7 percent at the end of 2017, 42.8 percent at the end of 2016, 53.4 percent at the end of 2015, 51.7 percent at the end of 2014, 47.3 percent at the end of 2013, 48.9 percent at the end of 2012, 47.2 percent at the end of 2011 and 41.6 percent at the end of 2010.

The amount of non-resident personal deposits at Latvian banks has decreased by 15.4 percent or EUR 298.974 million during the first quarter of 2018 to EUR 1.64 billion at the end of March. The amount of non-resident corporate deposits fell 31.7 percent or EUR 1.755 billion to EUR 3.781 billion.

Most of the non-resident deposits or 84.1 percent were demand deposits totaling EUR 4.936 billion at the end of March 2018. At the end of 2017, demand deposits made up 89.2 percent of non-resident deposits in Latvia.

At the end of March this year, majority on the non-resident deposits in Latvia were in the euros (63.9 percent against 42.5 percent at the end of 2017) and the U.S. dollars (31.4 percent against 53.4 percent at the end of 2017).

The amount of resident deposits held by Latvian banks did not change much in the first quarter of this year and stood at EUR 12.214 billion at the end of March which is equal to 67.5 percent of total deposits.