Banks, Financial Services, Latvia

According to FCMC data, in June 2019 foreign clients’ deposits totaled EUR 3.5 bn, which was 8.9 bn or 3.5 times less than at the end of 2015 when foreigners’ money at the Latvian banks was worth EUR 12.4 bn. The share of foreign deposits at the Latvian banks has thus contracted from 53.4 percent in late 2015 to 21.3% this June.

At the same time, domestic bank deposits grew by 21% from the end of 2015 to EUR 13.1 bn this past June.

Resident deposits made up 79%, EU depositors’ money 10%, CIS depositors’ money 4% and other depositors’ money 3% of all deposits held by the Latvian banks in June. At the end of 2015, by comparison, resident deposits accounted for 47%, other EU residents’ deposits for 18%, CIS depositors’ money for 9% and other foreigners’ deposits for 26%.

In June 2019, the Latvian banks held EUR 16.6 bn in deposits, down 29% from the end of 2015.

Earlier, then FCMC head Peters Putnins told LETA that the change management process in the Latvian banking sector is in its concluding stage as shown by the latest data. Putnins underlined that there are no longer reasons to claim an uncontrolled flow of high-risk money through Latvia.

At the end of 2018, the share of foreign deposits at the Latvian banks was 20.3%.