The principal changes in the assets and liabilities of Latvijas Banka on the 31 October 2016 balance sheet as compared to 30 September 2016 and the reasons for these changes.
In October 2016, loans granted as a result of targeted longer-term refinancing operations by Latvijas Banka remained unchanged.
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 257.0 million euro or 6.9% in October 2016, mostly on account of the purchase of securities.
In October 2016, deposits of credit institutions rose by 303.8 million euro or 7.8% 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, a decrease 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.
I. Medne
Deputy Chief Accountant
Latvijas Banka