After Cyprus: Latvia banks under pressure over Russian deposits

Did the “billions” of the Russian oligarchs (that were never here in the first place) leave Cyprus and head for the Baltic states?
Well, Moody’s Investors Service is worried that the rising levels of non-residential deposits within the Latvian banking system are considered credit negative.
The rating agency said that the negative pressure arises from the fact that deposits are the main funding source for Latvian banks, particularly for banks that lack parental funding. At the same time, Moody's view is that non-resident deposits (mainly from Russia and the CIS and currently 49% of total deposits at end-2012) are inherently less stable than their resident counterparts.
Non-resident business is driven by events in both the host banking system and in the non-resident's home nation, and although not uniformly distributed across the banks, levels have increased in recent years, the rating agency explained.
Moody's said that the increase in these deposit levels are mainly due to the recovery of the Latvian economy and the problems within some rival systems, probably Cyprus. At the same time, these deposits have played a significant role in the Latvian banking system since the conclusion of EU accession negotiations at the European Council (Copenhagen) in December 2002.
Moody's said that non-resident deposits pose additional risks because they introduce extra complexity into the banking system, that further challenges system-wide stability. The rating agency did not mention if the Latvian banks will be under review and possibly be downgraded if foreign deposits are multiples of the country’s output, as was the excuse for Cyprus downgrades.