Prudential requirements and ratios
Electronic money institutions holding a licence for unrestricted activity are subject to minimum initial capital and own funds requirements.
The minimum initial capital must be at least EUR 350,000.
The own funds requirement is calculated based on average outstanding electronic money. The own funds requirement of an electronic money institution designated for issuance of electronic money must account for no less than 2% of average outstanding electronic money. The own funds of an electronic money institution must be less than the larger of the two values: own funds calculated in line with a selected method or the minimum initial capital. An electronic money institution which also intends to provide payment services not related to electronic money issuance must, for the provision of these services, additionally select method A, B or C (applicable to payment institutions) for calculating its own funds requirement.
Average electronic money of electronic money institutions holding a licence for restricted activity, including intermediaries for which they assume full responsibility, outstanding over the last 6 months must not exceed EUR 900,000 per month. Where the institution provides payment services not related to electronic money issuance, the average amount of payment transactions not related to electronic money issuance, executed over the last 12 months, must not exceed EUR 3,000,000 per month. Electronic money institutions holding a licence for restricted activity are not subject to own funds requirements. Such a licence is valid solely within the Republic of Lithuania and entitles to issue electronic money and provide payment services indicated in Article 5(1–6) of the Republic of Lithuania Law on Payments.
Requirements for safeguarding client funds
An electronic money institution that directly receives client funds must safeguard them in accordance with one of the following methods:
- by holding them in a separate account opened with a credit institution of the Republic of Lithuania (including a foreign credit institution’s branch established in the Republic of Lithuania), with a credit institution of another Member State, the Bank of Lithuania or a central bank of another Member State, or investing these funds in secure, liquid low-risk assets
- by covering these funds by an insurance contract or obtaining a guarantee or a surety bond
An electronic money institution providing account information and/or payment initiation services must hold either professional indemnity insurance or other comparable guarantee against liability.