Active Management of NGF Funds, 2025: Latvijas Banka Added 6 Million Euros

11.06.2026.

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In 2025, Latvijas Banka actively invested the funds of the Deposit Guarantee Fund (NGF) in short-term liquid securities and thereby earned 6 million euros in income, increasing the NGF amount by such a sum, according to the NGF activity report published by Latvijas Banka. In total, since 2023, by actively managing NGF funds, 19.7 million euros in income have been earned.

At the end of 2025, the NGF was 302 million euros (currently, in June 2026, this indicator has risen to almost 315 million euros). In the reporting year, NGF participants contributed 22.9 million euros to it.

Last week, the Saeima supported the proposal developed by Latvijas Banka and promoted by the Ministry of Finance to amend the Deposit Guarantee Law, setting the NGF target volume at the level of 3% of the total volume of covered deposits attracted by Latvian credit institutions and credit unions.

The current level of the NGF is 2.4% of the covered deposits of all its participants. According to Latvijas Banka's preliminary calculations, the NGF target volume of 3% will be reached in 2027, with structural changes in the Latvian banking sector.

For any client of Latvian banks and credit unions – both natural and legal persons – compensation payment for all types of deposits in all currencies up to 100,000 euros per bank or credit union (in all accounts combined, if there are multiple accounts in one bank) is ensured in accordance with the Deposit Guarantee Law. The state-guaranteed amount applies to both deposits and settlement account balances, as well as salary accounts, savings accounts, etc.

The NGF was established on October 1, 1998, to ensure the payment of compensation to depositors for deposits made with a participant of the deposit guarantee system that have become unavailable, i.e., if a participant of the deposit guarantee system is unable to pay the depositor their deposit and the license of the deposit attractor is revoked or the court has declared it insolvent, or in other cases where Latvijas Banka has established that the deposit attractor is unable to pay the depositor's deposit and has adopted a decision on the occurrence of unavailability of deposits. The NGF is established and operates on the basis of the Deposit Guarantee Law.

Latvijas Banka carries out the accumulation, management of NGF funds, and payment of guaranteed compensation.

The Deposit Guarantee Law stipulates: if the NGF does not have sufficient funds to make guaranteed compensation payments in accordance with the law, Latvijas Banka may conclude a loan agreement for borrowing the missing sum from the deposit attractor or another member state's deposit guarantee fund. Finally, if other borrowing options are exhausted, the Ministry of Finance ensures state budget funds for the payment of guaranteed compensation.

NGF funds are accumulated from quarterly payments of deposit attractors (i.e., banks and credit unions), which is a percentage of the volume of attracted covered deposits determined by the Deposit Guarantee Law, adjusted by a risk coefficient, as well as from income earned from the management of NGF funds.

Currently, the NGF participants are 10 credit institutions registered in Latvia and 20 cooperative credit unions.

The full NGF activity report can be viewed here. The 2025 activity report of the Insured Protection Fund and the 2025 activity report of the National Resolution Fund have also been published.