According to the DGF report published by Latvijas Banka, in 2025, it actively invested the assets of the Deposit Guarantee Fund (DGF) in liquid short-term securities, generating EUR 6 million in income, which was channelled back into the DGF to further increase its value. Since 2023, Latvijas Banka has earned EUR 19.7 million in total by actively managing the DGF assets.
At the end of 2025, the DGF's value was EUR 302 million (as of June 2026, it has increased to almost EUR 315 million). During the reporting year, its members contributed EUR 22.9 million to the DGF.
Last week, the Saeima supported the proposal to amend the Deposit Guarantee Law, drafted by Latvijas Banka and submitted by the Ministry of Finance, to set a new target for the DGF at 3% of the total deposits in Latvian credit institutions and credit unions.
The current pay-in level of the DGF amounts to 2.4% of all covered deposits of all of its members. According to the provisional calculations of Latvijas Banka, the 3% DGF target will be achieved in 2027, as the Latvian banking sector undergoes structural changes.
In accordance with the Deposit Guarantee Law, any customer of banks or credit unions in Latvia – whether a natural person or a legal person – is guaranteed a compensation of up to EUR 100 000 per bank or credit union for all types of deposits in all currencies (the total amount across all accounts if there are several accounts with the same bank). The state-guaranteed amount covers deposits, current account balances, wage accounts, savings accounts, etc.
The DGF was established on 1 October 1998 to ensure the disbursement of compensation to depositors for deposits made with a participant of the deposit guarantee scheme that have become unavailable, i.e. when the participant of the deposit guarantee scheme is unable to pay out a deposit and its licence is revoked, or when the participant has been declared insolvent by a court, or in any other case in which Latvijas Banka has established that the deposit taker is unable to pay out the deposit to the depositor and has made a decision on the unavailability of deposits. The DGF was created and operates pursuant to the Deposit Guarantee Law.
The accumulation and management of the DGF funds, as well as the disbursement of the guaranteed compensation is performed by Latvijas Banka.
The Deposit Guarantee Law lays down that, should the DGF lack sufficient funds to pay the guaranteed compensation according to the law, Latvijas Banka may enter into a loan agreement to borrow the missing funds from the deposit taker or from the deposit guarantee fund of another Member State. Finally, if all other borrowing options have been exhausted, the Ministry of Finance shall allocate funds from the state budget to pay the guaranteed compensation.
DGF assets accrue from quarterly payments of deposit takers (i.e. banks and credit unions) that equal a specified percentage of the amount of received covered deposits, as defined in the Deposit Guarantee Law and adjusted by a risk factor, as well as from the income generated through the management of the DGF assets.
Currently, 10 credit institutions and 20 cooperative credit unions registered in Latvia have joined the DGF.
A complete report on the DGF can be found here. The 2025 Annual Report of the Fund for the Protection of the Insured and the 2025 Annual Report of the National Resolution Fund have also been published.