The principal changes in the assets and liabilities of Latvijas Banka on the 31 May 2018 balance sheet as compared to 30 April 2018 and the reasons for these changes.

In May 2018, loans granted as a result of targeted longer-term refinancing operations by Latvijas Banka remained unchanged.

Following the decisions of the Governing Council of the European Central Bank (ECB) on the expanded asset purchase programme (APP), the balance sheet item "Securities held for monetary policy purposes" grew by 84.8 million euro or 1.2% in May 2018, mostly on account of the purchase of securities.

In May 2018, deposits of credit institutions decreased by 449.9 million euro or 7.9% as reflected in the balance sheet item "Liabilities to euro area credit institutions related to monetary policy operations denominated in euro".

Mainly as a result of cross-border payments received and made by credit institutions and Latvijas Banka, an increase was recorded in liabilities to the ECB reported under the balance sheet item "Liabilities related to TARGET2 and national central bank correspondent accounts (net)", reflecting the settlement result in the TARGET2 settlement system.

J. Caune
Chief Accountant
Latvijas Banka