The 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.
Creation of Value
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 is the Ministry of Finance of the Republic of Lithuania.
- Council of the Company:
- Chair of the Council – Vilma Mačerauskienė, Director of Financial Markets Policy Department in the Ministry of Finance;
- Deputy Chair of the Council – Lina Frejutė, Senior Advisor of Project Management Division in the Ministry of Finance;
- Council members: Audrutė Dziskienė, Senior Advisor of Financial Markets Policy Department in the Ministry of Finance; Gediminas Šimkus, Director of Economics and Financial Stability Service at the Bank of Lithuania; Renata Bagdonienė, Director of Financial Services and Markets Supervision Department in Supervision Service at the Bank of Lithuania.
- Executive Officer – Director of the Company Aurelija Mažintienė.
Carrying duties set out by the Lithuanian Law on Insurance of Deposits and Liabilities to Inventors (the Law), the 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. The 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.
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.
The Company own capital is invested in line with Company’s own capital funds’ investments rules description approved by the Minister of Finance in the order No. 1K-257 as of June 23, 2016. 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 in the ruling No. 02-5-2.1 as of April 4, 2016.
Resolution fund assets are invested in line with Resolution Funds asset investment rules approved by the Bank of Lithuania board 2015, December 31 in the decree No. 03-217.
Based on conservative investment principles, the 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, the 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.