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Latvian banking system will easily survive if several hundred million lats are withdrawn from bank accounts

Kristaps Zakulis. Photo: LETA.
 RIGA, March 5 - The Latvian banking system will easily survive if several hundred million lats are withdrawn from non-resident bank accounts one day, Financial and Capital Market Commission's Chairman Kristaps Zakulis told LETA commenting the hypothetical scenario.

Large part of non-resident deposits, around LVL 6 billion, has been invested in reliable banks in Western Europe and America, as well as in some of the world's most valuable bonds, explained Zakulis.

The Financial and Capital Market Commission has ordered banks servicing non-residents to have a liquidity ratio twice as high as the other banks, so they would be able to continue service customers if part of them decides to withdraw their money, said Zakulis.

Zakulis also said that the Financial and Capital Market Commission had several times informed the public about the various aspects of non-resident deposits in Latvian banks.

As reported, European Parliament member Roberts Zile believes that, with Latvia's progress towards the euro-zone, experts will begin speaking more about non-resident deposits in Latvia and the risks these deposits create.

He pointed out that, for example, resident deposits increased by LVL 530 million in Latvia, while non-resident deposits increased by LVL 876 million. Thus, Latvia must be cautious on this matter and be capable of answering all possible questions.
leta.lv

05-03-2013
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