Analytics, Financial Services, Latvia

International Internet Magazine. Baltic States news & analytics Sunday, 24.06.2018, 19:23

Total savings by Latvian households grow to EUR 9.6 bln in 2016

BC, Riga, 15.06.2017.Print version
Total savings by Latvian households reached EUR 9.6 bln in 2016, according to the information from the financial watchdog, the Finance and Capital Market Commission informed LETA.

Total savings increased by EUR 1 bln last year, which is the steepest growth in the last four years.

The total includes deposits at Latvian commercial banks, contributions to the second-pillar (government-funded) and third-pillar (private) pension schemes as well as financial instruments. Deposits account for 61% of total savings by Latvian households, second-pillar pension assets make up 29%, third-pillar pension assets 4% and financial instruments 6%.

Bank deposits increased 8.9% in 2016 to EUR 5.86 bln at the end of the year.

Second-pillar pension assets grew 18. % during last year to EUR 2.8 bln, and third-pillar pension assets amounted to EUR 380.6 mln. Contributions to the third-pillar pension schemes reached a new annual record-high in 2016 - EUR 71.8 mln at a 6.3% growth from 2015.

The financial watchdog also published the Household Financial Sustainability Index for 2016 which is +7.7 points (+4.2 points in 2015). The index is based on five indicators - the loan-to-deposit ratio, deposits in percent of GDP, interest payments by households in percent of GDP, average net wage and the unemployment rate.

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