The volume of foreign deposits in Latvian banks, including ABLV Bank in the middle of its liquidation, declined to 28.7% in June when compared to 39.7% at the end of 2017, according to the latest information from the Finance and Capital Market Commission.
Without ABLV Bank, the volume of foreign deposits comes down to 22.1%.
According to data from FCMC, the total volume of deposits attracted by banks, including ABLV Bank, from private and legal persons in Latvia is 71%. 6% of deposits come from CIS countries and 12% from EU member states. 11% of deposits account for other countries.
“We currently have historically the largest proportion of local deposits, but the process is not over yet,” admits FCMC chairman Peters Putnins.
According to FCMC, the objective for foreign deposit volume in Latvia is 15%.
Putnins also mentions that soon Latvia will reach the desired proportion of deposits from CIS countries in Latvian banks – 5%.
At the same time, he says it is necessary to determine actual beneficiaries for deposits, who are currently classified as “other countries”.
“The basis for the analysis is the true beneficiaries. Respectively, if we see a large portion in this “other countries” segment in favor of CIS beneficiaries, we will definitely speak with banks. We do not want CIS clients to hind behind jurisdictions of other countries,” said Putnins.
As of June 20, Latvian banks attracted deposits worth EUR 17.6 billion, down by EUR 2.7 billion from the end of 2017. The volume of domestic deposits was EUR 12.5 billion (EUR 12.2 billion at the end of 2017). The volume of foreign deposits was EUR 5.1 billion (EUR 8.1 billion in 2017). (BNN/Business World Magazine)