Article 5. The main tasks and functions of an organization that provides mandatory deposit insurance The Law on Mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan

Home / Laws / Article 5. The main tasks and functions of an organization that provides mandatory deposit insurance The Law on Mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan

Article 5. The main tasks and functions of an organization that provides mandatory deposit insurance The Law on Mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan

1. The main objectives of an organization that provides mandatory deposit guarantees are:

1) participation in ensuring the stability of the financial system;

2) protection of the rights and legitimate interests of depositors of guaranteed deposits in the event that a participating bank is deprived of a banking license to carry out all types of operations.

2. To fulfill the main tasks, an organization that provides mandatory deposit insurance performs the following functions::

1) pays the guarantee compensation in accordance with the requirements of this Law;

2) maintains a register of banks participating in the mandatory deposit guarantee system;

2-1) participates in conducting an operation for the simultaneous transfer of assets and liabilities of the bank to another (other) bank(s) or a stabilization bank in the case provided for in Article 16 of this Law;

3) invests assets;

4) forms a special reserve;

5) establishes the requirements for agent banks in accordance with the procedure determined by the management body of the organization responsible for mandatory deposit guarantee;

5-1) approves the preliminary list of agent banks for the payment of guarantee compensation in accordance with the procedure determined by the governing body of the organization providing mandatory deposit guarantee;

 6) participates in the interim administration for the management of the bank, appointed during the period of application to the participating bank of the financial stability restoration regime, the settlement regime;

7) participates in the interim administration, appointed after the withdrawal of the participating bank's banking license to carry out all types of operations.;

8) participates in the liquidation commission of a participating bank being forcibly liquidated (forcibly terminating the activities of a branch of a non-resident bank of the Republic of Kazakhstan) until the liquidation commission repays the debt owed to the organization providing mandatory deposit guarantee in the amount of the guarantee compensation paid (payable) by it.;

9) participates in the creditors' committee of a participating bank being forcibly liquidated (forcibly terminating the activities of a branch of a non-resident bank of the Republic of Kazakhstan) until the liquidation commission repays the debt owed to the organization providing mandatory deposit guarantee in the amount of the guarantee compensation paid (payable) by it.

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.

President

Republic of Kazakhstan

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