International Internet Magazine. Baltic States news & analytics
Saturday, 25.01.2020, 17:41
July saw a considerable rise in savings of domestic enterprises held on bank accounts. At the same time, household deposits also continued on an upward path; however, they posted a minor increase during the summer spending season.
Keyword tags: Banks, Deposits, Direct Speech, Financial Services, Latvia
Stable economic growth has enabled Latvia's businesses and households to save more on their bank accounts. In the circumstances of rapidly increasing compensation of employees, both consumption and deposits with banks are growing. w
In 2018, deposits made by residents of Latvia and other European Union member states made up 91% of all deposits held by Latvian banks, LETA was told at the Financial and Capital Market Commission (FCMC) whose representatives cited fourth-quarter data on the Latvian banking sector’s transformation process, reported LETA/BNS.
Traditionally, December is the month when the highest monthly rise in deposits is observed as businesses close their year and households receive additional revenue during the holiday season. Last December saw the same; moreover, the growth of deposits (+4.8%) was the steepest since the last month of 2013 associated with the coming euro changeover.
At today’s meeting the Governing Council of the European Central Bank (ECB) decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.00%, 0.25% and -0.40% respectively.
Households were again active in taking out new loans and leases in July. The 111 mln euros of new housing loans was 7% more than was issued in the same month a year earlier. The yearly growth in the portfolio was around 7%, as in previous months.
Consolidated net profit of the listed Estonian banking group AS LHV Group totaled 2.4 mln euros in July, informs LETA/BNS.