Is Lithuania another Iceland banking crisis in the making? | Patrick Collinson

Revolut customers are protected by the Bank of Lithuania - but it's not certain it will pay up

It is almost exactly 10 years since the 300,000 British customers lured into Icesave by high interest rates woke up to find that their 4bn in deposits had disappeared when parent company Landsbanki collapsed and the country's entire financial system went into meltdown.

Iceland's deposit protection scheme instantly fell over. How could it not? A tiny country with a population about the same as Brighton found itself as the guarantor for savers across Europe, with Dutch as well as British savers heavily invested in the Landsbanki accounts. Today, we're told, it's all different. Banks have been forced to raise more capital, supervision and solvency testing is much more robust, and the EU has set a a100,000 (90,000) minimum deposit protection level for member states.