Article 12. Types and procedure of payment of contributions by participating banks The Law on Mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan

Home / RLA / Article 12. Types and procedure of payment of contributions by participating banks The Law on Mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan

1. The participating bank is obliged, in accordance with this Law and the accession agreement, to pay the following contributions to the organization providing mandatory deposit guarantee:

1) mandatory calendar fees - quarterly payments from participating banks;

2) additional contributions are one–time payments made by participating banks in the event of insufficient funds from the special reserve and own assets of the organization providing mandatory deposit guarantees used in accordance with paragraph 4 of Article 22 of this Law to pay the guaranteed compensation.;

3) emergency contributions - payments made by participating banks to fully repay the loan amount received by an organization providing mandatory deposit insurance in accordance with the procedure established by Article 23 of this Law and the remuneration accrued on it.

The payment of emergency contributions does not suspend the obligations of participating banks to pay mandatory calendar contributions.

2. The amount and procedure for payment of contributions by the participating bank are determined by the governing body of the organization providing mandatory deposit guarantee.

The amount of the participant bank's mandatory calendar contribution should not exceed 0.5 percent of the amount of the participant bank's guaranteed deposits as of the first day of the month following the reporting quarter.

The amount of the additional contribution of the participating bank must not exceed twice the amount of the mandatory calendar contribution paid by the specified participating bank to the organization providing mandatory deposit guarantee for the previous quarter.

The annual amount of the emergency contribution of the participating bank must not exceed the annual amount of the mandatory calendar contribution paid quarterly by the specified participating bank to the organization providing mandatory deposit guarantee.

3. From the date on which the participating bank is deprived of its license to conduct all banking operations, the obligations of the participating bank to pay contributions are terminated.

4. The contributions paid by the participating banks in accordance with the accession agreement are non-refundable.

The Law of the Republic of Kazakhstan dated July 7, 2006 No. 169-III.

This Law is aimed at protecting the rights of depositors – individuals, including individual business entities, and defines the legal basis for the functioning of the mandatory deposit guarantee system placed in second-tier banks of the Republic of Kazakhstan (branches of non-resident banks of the Republic of Kazakhstan), with the exception of interest-free demand deposits and investment deposits placed in Islamic banks (branches of non-resident Islamic banks of the Republic of Kazakhstan), the procedure for establishing and operating an organization that provides mandatory deposit insurance, the participation of second-tier banks of the Republic of Kazakhstan (branches of non-resident banks of the Republic of Kazakhstan) in the mandatory deposit guarantee system, as well as other issues of mutual relations between the participants of the system.

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