The Lithuanian Depositor Compensation Scheme (DCS) serves as a crucial financial safety net to protect account holders in the event of a bank’s failure. This deposit guarantee system ensures that if a participating bank or credit institution becomes insolvent, depositors will be reimbursed up to a defined limit. The protection extends to both individual and corporate depositors, and its main purpose is to maintain public confidence in the banking system, encouraging stability and minimizing the risk of bank runs.

In Lithuania, the DCS is managed by the state company Deposit and Investment Insurance (Indėlių ir investicijų draudimas, or IID), which was established in 1996. This organization operates under the supervision of the Bank of Lithuania and is funded by contributions from participating financial institutions. The deposit insurance limit is set at €100,000 per depositor per bank, which is in line with European Union standards. In the case of a bank failure, the IID is responsible for compensating depositors within a short period, typically within 7 working days.

The IID’s organizational structure consists of the General Meeting of Shareholders, the Supervisory Board, and the Management Board. The General Meeting of Shareholders is the highest decision-making body, while the Supervisory Board oversees the Management Board’s activities. The Management Board is responsible for the day-to-day operations of the company.

You can contact the Lithuanian Deposit and Investment Insurance at their office located at Žalgirio g. 90, 09303 Vilnius, Lithuania, or through phone at +370 5 213 5657, and email at [email protected].