Lithuania’s banking regulator will attempt to drive European-level reforms to the way customer funds are safeguarded by e-money and payment institutions.
Customer money held by non-bank payment service providers is not covered by the EU Deposit Protection Insurance Scheme that applies to banks, meaning funds could be lost if the credit institutions they are held in go bust.
The difference between the protections offered by non-bank participants and credit institutions has fed “a perceived credibility gap”, the Bank of Lithuania said in a statement on Tuesday following a consultation on ways to improve safeguarding.
Request a Free Trial
As a trusted source of regulatory intelligence for the global payments industry, we enable organisations to manage the growing volume and velocity of regulatory risk with confidence, empowering more informed and effective decision making, in an efficient and cost-effective way.Take a Trial