About the Insurance Company

In December 1995 operation of the Lithuanian Equity Innovation Bank and the Litimpeks bank was suspended. At the time these were among the largest and most popular banks operational in the country. A major part of the Lithuanian population kept their savings here. Therefore, after the suspension of their operation people were greatly concerned and started doubting operation of other Lithuanian banks and safety of the deposits held there. First, the public mistrusted banking activities, then they went into panic. This encouraged immediate development of the mechanism for deposit safety. Such a step became a necessity in order to regain people’s trust in banks. Shortly afterwards – on December 21 of the same year- the Seimas of the Republic of Lithuania passed the Law on the Insurance of Deposits of Individuals No. I-1152 setting forth the mandatory procedure of insurance of individuals’ deposits kept in Lithuanian banks and the rates for compensation of those deposits from the moneys of the Deposit Insurance Fund. Under the document passed, on June 26, 1996, the Government of the Republic of Lithuania set up the state company Deposit Insurance Fund, formed its council and approved the bylaws. The Ministry of Finance of the Republic of Lithuania became the founder of the Fund. The state transferred 30 million litas of budgetary funds to form the authorised capital of the Fund. 

On December 16, 1996, the state company Deposit Insurance Fund was registered with the Ministry of Economy of the Republic of Lithuania. This date is considered to be the founding date of this Fund. 

March 1, 1997, saw the start of insurance of deposits of individuals. 

In 1997, bankruptcy action was brought against AB Tauro Bankas and insurance indemnities was paid to depositors of this bank.

In 1999, bankruptcy action was brought against the Litimpeks bank and insurance indemnities was paid to depositors of this bank.

On February 27, 2001, to harmonise elements of the Lithuanian deposit insurance with the requirements of the European Union, the Law on Deposit Insurance of the Republic of Lithuania No. IX-192 was passed, expanding the subject of deposit insurance – from then on not only deposits of individuals, but also deposits of companies could be insured. In addition, the types of the insurers were supplemented by credit unions. On June 20, 2002, the Law on Deposit Insurance and Insurance of Liabilities to Investors of the Republic of Lithuania No. IX-975 was passed. This law broadened the subject of insurance even more, to include insurance of liabilities to investors. 

On August ,2002, the name of the state company Deposit Insurance Fund was changed into the state company Deposit and Investment Insurance (hereinafter the Insurance Company).

Internal audit of state company Deposit and Investment Insurance performs Internal Audit Division of Ministry of Finanse.