Deposits of private individuals and legal entities at the Bank are protected by the funds accumulated in the Deposit Guarantee Fund.
The Deposit Guarantee Fund is managed by the Bank of Latvia and governed by the Deposit Guarantee Law.
The Deposit Guarantee Fund is a monetary fund formed by state budget funds and statutory contributions made by fund members, i.e., credit institutions and, in cases stipulated in the Deposit Guarantee Law, by Latvian branches of EU Member State banks, as well as branches of foreign banks and savings and loan associations to ensure the protection of depositors’ interests.
The Deposit Guarantee Law determines:
Bank’s customers are entitled to the state-guaranteed compensation for all types of deposits in all currencies, but not exceeding the amount of 100,000 euros, if at least one of the following conditions is met:
- when an organisation attracting deposits is unable to pay out deposits,
- due to the declaration of insolvency,
- annulment of licence or other circumstances stipulated by law.
The guaranteed compensation is paid out in euro (EUR) only.
Deposits for which the guaranteed compensation is not paid:
- deposits of credit institutions and credit unions;
- deposits of financial institutions;
- deposits of local governments, whose annual budget exceeds 500,000 euros, and direct administration institutions;
- deposits related to money laundering or recognised as the proceeds from crime, if the court judgement of conviction has entered into force;
- deposits, for which a depositor as a customer has not been identified in accordance with the provisions of the Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing;
- deposits, which, in accordance with law, form the equity capital of an organisation attracting deposits;
- deposits of insurance and reinsurance companies;
- deposits of investment broker companies;
- deposits of investment management companies;
- deposits of private pension funds;
- deposits of managers of alternative pension funds;
- debt securities issued by a credit institution, as well as liabilities arising from its bills, including bills of exchange;
- deposits, with which no transactions have been performed over the last two years following the date of occurrence of unavailability of deposits and the value of which is below 10 euros.
Additional information:
