Deposit Insurance Legislation of the Republic of Kazakhstan

Law of the Republic of Kazakhstan dated July 7, 2006 No. 169-III “On Mandatory Guaranteeing of Deposits Placed in Second-Tier Banks of the Republic of Kazakhstan”

The Law is aimed at protecting the rights of depositors – natural persons, including individual entrepreneurs, and defines the legal basis for the functioning of the mandatory guarantee system for deposits placed in second-tier banks of the Republic of Kazakhstan (branches of non-resident banks of the Republic of Kazakhstan), excluding interest-free demand deposits and investment deposits placed in Islamic banks (branches of Islamic non-resident banks of the Republic of Kazakhstan), the procedure for the establishment and activities of the JSC “Kazakhstan Deposit Insurance Fund”, 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 relationships between the system participants.

Law of the Republic of Kazakhstan dated August 31, 1995 No. 2444 “On Banks and Banking Activity in the Republic of Kazakhstan”

The principal law that defines and regulates the activities of the banking system of the Republic of Kazakhstan. The Law regulates the procedure for the establishment of second-tier banks (branches of non-resident banks of the Republic of Kazakhstan) and their carrying out of banking activities, maintaining records and submitting reports, undergoing audits, as well as the procedure for their reorganization and liquidation. In addition, the Law provides for measures to ensure financial stability and resolution of insolvent banks and measures to protect consumers of banking services. In particular, the Law determines that a mandatory deposit guarantee system is created to protect the interests of depositors of second-tier banks of the Republic of Kazakhstan.