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

Home / Laws / 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 a participating bank is deprived of a banking license to carry out all types of operations, the organization providing mandatory deposit guarantee shall pay a guarantee refund to depositors for guaranteed deposits 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 is used, determined on the date of withdrawal of the participating bank's banking license to carry out all types of operations.

3. If the participating bank, which was deprived of a banking license to carry out all types of operations, acted as a creditor towards the depositor, the amount of the guarantee compensation is determined on the date of deprivation of the participating bank's banking license to carry out all types of operations based on the amount of the difference resulting from offsetting the amount of the guaranteed deposit and the amount of counterclaims of the specified the participating bank.

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, private notaries, private bailiffs, lawyers and professional mediators, and defines the legal basis for the functioning of the mandatory deposit guarantee system placed in second-tier banks of the Republic of Kazakhstan (bank branches – non–residents of the Republic of Kazakhstan), with the exception of Islamic bank deposits and money in bank accounts raised as part of Islamic banking operations, as well as the procedure for establishing and operating an organization that provides mandatory deposit guarantee, 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 and other issues of mutual relations between participants systems.

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Republic of Kazakhstan

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