The principal changes in the assets and liabilities of Latvijas Banka on the 31 March 2016 balance sheet as compared to 29 February 2016 and the reasons for these changes.
In March 2016, loans granted as a result of targeted longer-term refinancing operations by Latvijas Banka remained unchanged at 245.0 million euro.
Following the decision of the Governing Council of the European Central Bank (ECB) of 22 January 2015 on an expanded asset purchase programme (APP), the balance sheet item "Securities held for monetary policy purposes" grew by 181.7 million euro or 8.3% in March 2016, mostly on account of the purchase of securities. The balance sheet item "Other securities" rose by 248.5 million euro or 14.7% as a result of increased investment in other securities of euro area residents, with a respective decrease in claims in foreign currencies.
In March 2016, deposits of credit institutions shrank by 599.0 million euro or 14.5% 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 settlement result in the TARGET2 settlement system.
J. Caune
Chief Accountant
Latvijas Banka