The principal changes in the assets and liabilities of Latvijas Banka on the 28 February 2015 balance sheet as compared to 31 January 2015 and the reasons for these changes.
In February 2015, loans granted as a result of targeted longer-term refinancing operations by Latvijas Banka remained unchanged standing at 85.5 million euro.
In view of the fact that euro cash is issued in circulation by all national central banks (NCBs) of the Eurosystem, each NCB reports banknotes in circulation on its balance sheet in proportion to its share of the ECB's capital in the total amount of euro banknotes issued by the Eurosystem rather than the actual amount issued. Consequently, the amount of banknotes actually issued is adjusted in the balance sheet (increased in the case of Latvijas Banka) as the proportionate share of Latvijas Banka in the total amount of banknotes issued by the Eurosystem is larger than the amount of euro banknotes issued in Latvia. As a result of the above adjustment, the respective claims on the ECB for the allocation of banknotes are reported under Latvijas Banka's balance sheet item "Claims related to other operational requirements within the Eurosystem". As at 28 February 2015, the balance sheet item "Banknotes in circulation" comprised the euro banknotes actually issued in circulation in the amount of 615.9 million euro.
In February 2015 deposits of credit institutions grew by 600 million euro or 49.1% as reflected in the balance sheet item "Liabilities to euro area credit institutions related to monetary policy operations denominated in euro".
Mostly as a result of cross-border payments of credit institutions, 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 settlement result in the TARGET2 settlement system.
J. Caune
Chief Accountant
Latvijas Banka