The principal changes in the assets and liabilities of Latvijas Banka on the 28 February 2018 balance sheet as compared to 31 January 2018 and the reasons for these changes.
In February 2018, loans granted as a result of targeted longer-term refinancing operations by Latvijas Banka decreased by 50 million euro or 20.4%.
In February 2018, claims on euro area credit institutions denominated in euro increased by 298.0 million euro, mainly on account of short-term loans granted as emergency liquidity assistance.
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 82.5 million euro or 1.2% in February 2018, mostly on account of the purchase of securities.
In February 2018, deposits of credit institutions shrank by 537.8 million euro or 9.6% 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 the settlement result in the TARGET2 settlement system.
G. Gersons
Acting Chief Accountant
Latvijas Banka