State company „Deposit and Investment Insurance“ (Company) mission:
To ensure protection of deposits and liabilities to investors in case of financial institution failures, thus contributing to higher stability of financial markets and society`s trust in financial institutions.
Strategic goals of the Company:
- Increase efficiency of insurance compensations disbursement and reliability of insurance system.
- Increase company efficiency.
- Increase efficiency of insured event supervision
More about the Company:
The Company was established in 1996 as limited liability public legal entity.
At the moment Lithuanian deposit guarantee and investor compensation schemes are in line with EU legal requirements and principles.
Governance of the Company:
- Institution carrying out Company’s owner‘s rights and obligations – Finance Ministry of Lithuania.
- Council of the Company:
- Chair of the Council - Sigitas Mitkus, director of Finance Ministry‘s Financial markets policy department;
- Deputy Chair of the Council Lina Frejutė, deputy head of Finance Ministry‘s Institutions‘ supervision division;
- Council members: Audrutė Dziskienė, senior advisor of Finance Ministry‘s F Financial markets policy department; Gediminas Šimkus Bank of Lithuania Economics and Financial stability service director; Mindaugas Šalčius, Bank of Lithuania Supervision service Risk limitation supervision department deputy director.
- Executive officer – director of the Company Aurelija Mažintienė.
Carrying duties set out by the Lithuanian Law on Deposit and Liabilities to Inventors Insurance (the Law), Company insures deposits held in banks and credit unions (credit institutions), and liabilities of banks, brokerage firms, management firms, that have the right to provide investment services to investors. Company insures liabilities to investors since 2002.
The Company insures deposits in all currencies, as well as liabilities to return investors‘financial instruments and (or) money in all currencies. Insurance objects and exceptions of insurance coverage are provided in the Law.
Deposit Insurance Fund members
Liabilities to Investors Insurance Fund members
Resolution Fund members
Funds under management:
The company manages three funds: Deposit Insurance Fund, Liabilities to Investors Insurance Fund and Resolution Fund.
Deposit insurance fund members‘ annual premiums, as regulated by the Law, are set once a year by order of the minister of finance as a single sum of annual premiums, deposit sizes kept with the Deposit Insurance Fund members and their risk coefficients. Deposit insurance fund members‘ premiums are distributed equally and paid once a month.
Liabilities to investors insurance premiums credit institutions that provide investment services, financial brokerage firms and management firms pay once a year. Premium size depends on liabilities to investors insurance system members‘ investment services and their type, a fixed annual premium is paid from 868 euro to 2 896 euro, also in some cases additional premiums are paid, that are calculated as a share of order value carried out on behalf of clients during last calendar year.
Resolution fund members pay premiums set by Single Resolution Board once a year.
Company own capital is invested in line with Company’s own capital funds’ investments rules description, approved by minister of finance 2016, June 23 order no. 1K-257, requirements. Deposit and liabilities to investors insurance funds‘ assets are invested in line with Deposit and liabilities to investors insurance funds‘ assets investment rules, approved by Company‘s Council 2016, April 4 ruling No. 02-5-2.1.
Resolution fund assets are invested in line with Resolution Funds asset investment rules, approved by Bank of Lithuania board 2015, December 31 decree No. 03-217.
Based on conservative investment principles, Company’s investment portfolio is concentrated in government debt value papers.
In case a deposit insured event or liabilities to investors insured event is declared, Company pays out insurance payouts to depositors or investors, in line with provisions of the Law. The Company gains creditor’s claim to the bankrupt credit institution, financial brokerage firm or management firm equal to the distributed payouts.