Deposits by Latvian and European Union clients dominate in the banks operating in Latvia, as 91% of total deposits in the country are owned by local clients (80%) and EU member state clients (91%), according to the findings of the Latvian Financial and Capital Market Commission.
The Commission reported, that according to its data, deposits of clients from third countries comprised 9% of all deposits. The total volume of deposits in banks in Latvia has been increasing for the past years reaching 213 billion euros.
In 2016, the watchdog of the national financial market issued guidelines and specific tasks for banks, pushing for a change of business approach and focus in the Latvian banking sector. The Commission explained that complex regulatory measures have achieved stabilization in the sector and reached considerable growth in the percentage of deposits by local clients.
In 2015, foreign clients (EU citizens and citizens of countries outside the EU) had 53% of all deposits in Latvian banks; however, by the beginning of 2019 their proportion has lowered to 20.5%. (BNN/Business World Magazine)