The principal changes in the assets and liabilities of Latvijas Banka on the 31 October 2017 balance sheet as compared to 30 September 2017 and the reasons for these changes.
In October 2017, 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 an expanded asset purchase programme (APP), the balance sheet item "Securities held for monetary policy purposes" grew by 196.8 million euro or 3.2% in October 2017, mostly on account of the purchase of securities.
In October 2017, deposits of credit institutions rose by 943.0 million euro or 22.7% 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.
J. Caune
Chief Accountant
Latvijas Banka