Although the volume of savings of Latvians in banks has shown a trend of growth for many years, the residents of the country are financially unprepared for shocks, which could lead to quite unpleasant consequences.
Today, creating a financial safety net has become even more relevant than a year or two ago, as uncertainty in the global economy grows and the risk of unfavorable developments is higher than before.
If we look at the overall statistics of deposits in commercial banks, it may seem that a significant part of society is well-prepared for a rainy day. The average balance in accounts per resident of Latvia, including infants, exceeds 6000 euros, and this figure may seem quite large. However, this is just an average, and this is where the good news ends.
When asked what percentage of bank customers have account balances exceeding 500 euros, the head of the product line in the bank's investment support department, Karina Rokyane, replies that it is about 54% of customers. This means that the financial situation of the remaining 46% is worse. It is possible that some of them have accounts in several banks or have invested in real estate, gold, bonds, etc. However, the overall picture remains alarming, as 500 euros is a rather modest amount, meaning a significant part of Latvia's residents is financially unprotected. The problem is that during major economic upheavals, income streams can quickly dry up, and a small reserve can run out fast.
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