The principal changes in the assets and liabilities of Latvijas Banka on the 31 January 2016 balance sheet as compared to 31 December 2015 and the reasons for these changes.
In January 2016, loans granted as a result of targeted longer-term refinancing operations by Latvijas Banka decreased by 10.0 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), the balance sheet item "Securities held for monetary policy purposes" grew by 192.0 million euro or 10.6% in January 2016, mostly on account of the purchase of securities.
In January 2016, deposits of credit institutions decreased by 808.1 million euro or 16.9% 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.