Deposit Guarantee Scheme Lithuania

Information Leaflet – A Deposit Guarantee Scheme Reimburses a Limited Amount to Compensate Account Holders Whose Bank in Lithuania Has Failed

Deposit Guarantee Scheme Lithuania: The Lithuanian deposit insurance system covers appropriately insured deposits of depositors in all currencies held with credit institutions. A payout event is considered in the following circumstances:

  • Bankruptcy or insolvency of a DGS member.
  • Unavailability of deposits without any legitimate prospects of change in the near future.

Secured Deposit Limit: Deposits held with banks and credit unions established in Lithuania are insured for the amount of up to €100.000.

Additional Insured Coverage: In certain specific cases extra compensation of up to €300.000 can be provided.

Payout events: The deposit guarantee fund informs the public via mass media that a payout event is about to start and where and how insurance payouts are paid. Account holders and other creditors should follow the instructions provided by the fund to claim their insurance payout.

Claim Filing Procedure: Members of the Lithuanian deposit insurance system can become insolvent,  go bankrupt and lose their license. The deposit insurance fund must then reserve liquidity for swift reimbursement of eligible deposits. A local paying agent bank is appointed to assist the fund with due diligence and repayment. Creditors must file their claim with the agent bank by confirming their identity, submit a proof of claim and provide the agent bank with a payment instruction.

Claim Submission Timeframe: Depositor’s right to claim insurance payout is valid for 5 years from the day of the insured event.

Repayment Timeframe: Insured deposits are repaid within 7 working days after the claim is approved by the fund.

Repayment Conditions: Repayment takes place by bank transfer to a bank account of eligible creditors only. Excluded from DGS coverage are financial institutions, management firms, brokers, investment and pension funds, and deposits for which a conviction is made for money laundering.

DGS Claim Rejections: The legitimacy of a DGS claim or a temporarily high account balance must be confirmed. Even though no official claim is required by the creditor, claim rejections may occur. Upon rejection, first contact for reinspection should be made with the deposit guarantee fund and the liquidator. Reinspection requires supporting evidence to overturn a negative response. In addition, creditors can seek an independent review by the court of their DGS claim rejection.

Scheme Architecture: The fund is prepaid by its members and holds about 131 million euro in reserves available for future distribution when a payout event occurs. More information on bank deposit protection in Lithuania is available here.

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