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On May 21, 2026, the Saeima of the Republic of Latvia approved in first reading amendments to the Deposit Guarantee Law (DGL) that introduce significant changes to the fund's financing structure and administrative framework. The amendments aim to strengthen Latvia's financial sector competitiveness and facilitate new market participants' entry. Key changes include eliminating the one-time initial payment requirement for newly established credit institutions and savings and loan associations upon licence receipt, reducing financial barriers to market entry. The amendments establish a clearer and more predictable payment calculation methodology, with a defined threshold at which contributions to the fund cease. The amendments set the Deposit Guarantee Fund's (DGF) target level at three percent of the total covered deposits held by fund members, establishing the first explicit upper limit for mandatory contributions. This enables credit institutions and savings and loan associations to forecast expenses more accurately and reduces payment obligations once the target is reached. Technical regulations for payment calculation and execution will be delegated to the Bank of Latvia (Latvijas Banka), ensuring stable, predictable, and uniform fund financing throughout the year. The amendments retain fundamental principles and target levels while maintaining compliance with European Union requirements. Additionally, income generated from fund management may be used to cover operational costs and the guaranteed compensation system's expenses, reducing additional payments from financial market participants and promoting more efficient system operation. Anda Čakša, chair of the Budget and Finance (Tax) Commission, said the amendments will strengthen the DGF's financing stability, reduce administrative burden, and improve fund members' competitiveness while attracting new financial market participants to Latvia. The Saeima must approve the amendments in second and final reading for them to enter into force.