bank branches, development institutions, and credit unions. As of 2003, the coverage limit was 50 million won per depositor per institution. The KDIC is legally authorized to borrow from the government or central bank with the approval of the ministry of finance.

_Sources_ : Garcia (1999), IADI Survey: Korea (2003), Korea Deposit Insurance Corporation (2004), Ko (1997), Kyei (1995).

**Latvia.** ( _Law on guarantees for deposits of natural persons)_ The DIS of Latvia was established in 1998. It is administered officially. Insider deposits and accounts in bank already declared bankrupt or insolvent, or in liquidation proceedings are not covered. The initial coverage limit was 500 Lats. In accordance with the EU standards, this amount will be gradually increased up to 13,000 Lats by the year 2008 according to the following schedule: 500 Lats, until December 31, 1999; maximum 1,000 Lats until December 31 2001; maximum 3,000 Lats until December 31, 2003; maximum 6,000 Lats until Dec 31, 2005; maximum 9,000 Lats until Dec 31, 2007; maximum 13,000 Lats after Jan. 2008. The Bank of Latvia and the government made initial contributions to the fund.

_Sources_ : Bank of Latvia (1998), Garcia (1999), Institute of International Bankers (1997).

**Lebanon.** ( _National Deposit Guarantee Institution, Banque du Liban, Law no. 28/67_ ) The deposit insurance scheme of Lebanon was established in May 1967. It is administered and funded jointly. The government matches the premiums paid by the banks. The central bank contributed half of the initial capital. The fund can borrow from the central bank. Initially, the scheme extended coverage only to deposits denominated in Lebanese pounds up to LL 30,000 (approximately $10,000 at the time) per depositor per bank. The insurance coverage limit was then raised to LL 250,000 (approx. $2,874) in 1986; to LL 1 million (approx. $1,887) in 1988 and to LL 5 million ($5,688) in 1991. The level remained the same since then, corresponding to $3,3317 as of 2003. According to a transitional law lasting from the end of 1991 to the end of 1998, deposits in foreign currencies were also covered up to LL 5 million. _Sources_ : Banque du Liban (2004), Garcia (1999), Kyei (1995).

**Liechtenstein.** ( _Financial Services Authority, Liechtenstein Banking Act of 1992, Art.7; Liechtenstein Bankers Association_ ) In accordance with the EU directives Liechtenstein passed a banking law in 1992 requiring banks to provide guarantees for deposits and investments lodged in them.  As a privately administered scheme, Liechtenstein Bankers Association started up the Liechtenstein Bankers Association Deposit Guarantee and Investor Protection Foundation. The insurance scheme covers deposits of private customers up to  a maximum of EUR 20,000 or its equivalent in other EEA currencies and CHF. Deposits denominated in other currencies are not covered. The Foundation can meet its obligations up to CHF 300 million as constrained by the contractually agreed maximum contribution amounts by member banks. _Source_ : Liechtenstein Banking Act (1992).

**Lithuania.** ( _Deposit Insurance Fund, Deposit Insurance Law, December 1995_ ) The deposit insurance scheme of Lithuania was established in 1996 based on a law that was voted in the parliament in December 1995 after the failure of two large and popular banks. It is officially legislated and administered. The government provided the initial capital and is committed to cover any shortfall. Membership to the Fund is mandatory and the premium rate for banks and branches of foreign banks is 0.45% and for credit unions 0.2% of insured deposits. The deposits are covered 100% up to LTL 10,000 and 90% from LTL 10,000 to LTL 45,000 ($16,200 as of 2003) per depositor per institution. Under the new law, the insurance limit is projected to reach a level of EUR 20,000 by 2008.

_Sources_ : Brance, Kammer and Psalida (1996), IADI Survey: Lithuania (2002), IMF Country Report: Lithuania (2002).

**Luxembourg.** ( _Deposit Guarantee Association_ ) The scheme was established in 1989. It is privately administered. There is no permanent fund in place. Banks make ex-post contributions when needed. The coverage limit of LUF 500,000 was raised to 90% of ECU 15,000 in July 1995. Since January 2000, it is set at 90% of EUR 20,000 per depositor per institution. Branches of foreign banks are also members of the system. If a foreign bank is organized under the law of another EU member state, it does not have to participate in the system, but the coverage amount should be equal to that allowed in the Luxembourg system.

_Sources_ : Own survey of deposit insurers, Garcia (1999), Institute of International Bankers (1997), Kyei (1995).

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