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 / RLA / 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 tasks 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 the participating bank is deprived of its license to conduct all banking 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 a bank to another (other) bank(s) 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 conservation period of the participating bank;

7) participates in the interim administration, appointed during the period when the participating bank is deprived of licenses to conduct all banking 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, 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.

President

Republic of Kazakhstan

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