Investor Presentaiton
BANKS HAVE AMPLE LIQUIDITY RESERVES AND HIGH CAPITALIZATION
Banking sector is largely funded by domestic deposits; ample capital buffers provide good shock absorption capacity
110%
100%
90%
80%
70%
60%
Domestic loan-to-deposit ratio
Average Liquidity Coverage Ratio
stands at 232%
30%
25%
20%
15%
10%
72.7%
50%
2018
2019
2020
2021
2022
2023
27
Source: Latvijas Banka
5%
0%
2019
2020
Total capital ratio
Latvia
EBA RD: Latvia 24.4%
Sweden
22.5%
19.4%
2021
2022
2023
Latvia (COREP)
ā Sweden (EBA*)
ā EU/European Economic Area (EBA*)
* Data for Sweden and European Union (EU)/European Economic Area (EEA) are European Banking Authority (EBA)
sample of largest institutions, for Latvia COREP data of active institutions are used
Source: Latvijas Banka, European Banking Authority (EBA) Risk Dashboard 2022 Q4View entire presentation