Insurance of Deposits and Liabilities to Investors

The Law on Insurance of Deposits and Liabilities to Investors of the Republic of Lithuania establishes the procedure for the insurance of deposits and the liabilities to investors, as well as the amount of insurance benefit. The principal objective of the system — for the guarantees in respect of the deposits and the liabilities to investors — is to enhance the confidence of deposit holders and investors in the financial markets and to ensure the stability of the financial markets.

Deposits and liabilities to investors must be insured at an insurance undertaking by banks, credit unions, undertakings  as well as foreign banks and undertakings  having branches in the Republic of Lithuania at which deposits or liabilities to investors have no insurance coverage/are not subject to compensation or which are not covered by any other protection schemes under the legislation of a foreign state  exercising jurisdiction over the bank  which has established a branch or the undertaking which has established  a subsidiary.

Deposits and liabilities to investors must be insured at the State company Deposit and Investment Insurance. This insurance undertaking accumulates funds in the Deposit Insurance Fund and Liabilities, calculates and disburses the insurance benefits to depositors and investors of the insurer, and evaluates deposit insurance or insurance of liabilities to investors (compensation), or other conditions for ensuring safety of foreign states, banks or companies of which there are established departments (branches) in the Republic of Lithuania. It also performs other functions assigned to it.