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INFOGRAPHICS: Transformation of Latvian banking sector, Q4 2018

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According to the FCMC data the Latvian banking sector now is characterized by the following indicators:

- domestic and EU deposits are dominating in the Latvian banks, reaching 91% of all banking deposits, of which 80% are deposited by local customers, 11% by residents of other EU member states and 9% by customers from other countries;

- on 31.12.2018 the share of foreign deposits was 20.3% (compared to 20.5% in Q3 2018), while domestic deposits continue growing steadily for several years, reaching 13 billion euro by the end of 2018 (compared to 12.3 billion euro in Q3 2018);

- with giving up high-risk foreign customer business, the sharp decline in foreign deposits has come to an end and their share has shrunk from 53% in 2015 to 20% at the present, demonstrating stabilization in the segment;

- the euro has established its position as the prevailing currency in Latvia, for example, in comparison with 2014, foreign customers’ payments with US dollars have contracted more than 20 times, hitting the all-time low level observed in the two last quarters of 2018, and this shows a historic turn in the Latvian banking sector's business approach.