The principal changes in the assets and liabilities of Latvijas Banka on the 30 June 2016 balance sheet as compared to 31 May 2016 and the reasons for these changes.
In June 2016, loans granted by Latvijas Banka as a result of the first series of targeted longer-term refinancing operations decreased by 241.2 million euro. In June, a second series of targeted longer-term refinancing operations (TLTRO II) was launched, with three Latvian credit institutions participating. Loans granted as a result of the TLTRO II increased by 230.5 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) and the decision of the Governing Council of the ECB of 10 March 2016 on the supplementation of the expanded APP, the balance sheet item "Securities held for monetary policy purposes" grew by 238.8 million euro or 8.3% in June 2016, mostly on account of the purchase of securities.
In June 2016, deposits of credit institutions shrank by 652.2 million euro or 17.6% 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