Banks, Financial Services, Latvia, Loan
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Wednesday, 24.04.2024, 09:23
Bank of Latvia: lending to grow at very moderate pace in 2018
The domestic loan portfolio expanded by 0.3% in November, with the loan
portfolio of non-financial corporations increasing by 0.8% and loans to
households for house purchase edging up by 0.1%. Although in November new loans
to both non-financial corporations and households were larger year-on-year,
they fell behind the levels recorded in October 2017.
Domestic deposits with banks expanded by 1.8% in November, including
increases of 1.7% and 1% in corporate and household deposits respectively, with
their annual growth rates being 4.7% and 8%.
"The fact that strengthening of the economy supports and is likely to
stimulate accumulation of savings also next year is a positive factor both
supporting financial sector stability and developing economic growth potential.
Despite favorable financing conditions provided by the central bank, lending
growth is rather weak. Next year lending will continue to develop on a very
moderate path and will not be among the main drivers of economic growth;
nevertheless, some growth is expected both in corporate lending (in the real
estate and construction sectors in particular) and loans to households for house
purchase and consumer loans," Purvins said.
According to the information from the Bank of Latvia, aggregate value of
the Latvian banks' domestic loan portfolio was EUR 12.45 billion at the end of
November 2017, while domestic deposits totaled EUR 11.293 billion.