Article 18. Guarantee compensation The Law on Mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan

Home / RLA / Article 18. Guarantee compensation The Law on Mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan

1. In the event that the participating bank is deprived of its license to conduct all banking operations, the organization that carries out mandatory deposit guarantee shall pay the depositors for guaranteed deposits a guarantee refund in the amount of the remaining balances.:

for savings deposits in national currency – no more than twenty million tenge;

for other deposits in the national currency – no more than ten million tenge;

for deposits in foreign currency – no more than five million tenge.

If the depositor has several different types of guaranteed deposits in a participating bank, specified in part one of this paragraph, the organization providing mandatory deposit guarantee shall pay a cumulative guarantee refund for them within the maximum amount of the guarantee refund established for each type of deposit separately, but not more than twenty million tenge.

2. Payment of the guaranteed compensation for guaranteed deposits is made in the national currency of the Republic of Kazakhstan. To calculate the guarantee compensation for deposits in foreign currency, the market exchange rate determined on the date of revocation of the participant bank's license to conduct all banking operations is used.

3. In the event that the participating bank, which was deprived of its license to conduct all banking operations, acted as a creditor towards the depositor, the amount of the guarantee refund is determined on the date of the withdrawal of the participating bank's license to conduct all banking operations based on the amount of the difference resulting from offsetting the amount of the guaranteed deposit and the amount of the counterclaims of the specified bank-the participant.

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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Republic of Kazakhstan

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