The Central Bank of Latvia has published its 2025 report on the Deposit Guarantee Fund, showing that active investment of the fund's assets in liquid short-term securities generated EUR 6 million in income during the year. That income was retained in the fund, which stood at EUR 302 million at the end of 2025 and had risen to almost EUR 315 million by June 2026. Since 2023, active management of the fund's assets has generated EUR 19.7 million in total, while fund members contributed EUR 22.9 million in 2025. The update also highlights a proposed increase in the fund's target size. Latvia's parliament has supported amendments to the Deposit Guarantee Law, drafted by the Central Bank of Latvia and submitted by the Ministry of Finance, that would set the target at 3% of total deposits in Latvian credit institutions and credit unions. The fund's current pay-in level is 2.4% of covered deposits, and the central bank's provisional calculations indicate the 3% target would be reached in 2027 as the banking sector undergoes structural changes. Under the law, customers of banks and credit unions in Latvia are entitled to compensation of up to EUR 100000 per institution across all deposits and currencies if deposits become unavailable.

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