In the journal “Bankauski Vesnik” No. 4/729 for April 2024, the article "Assessment of the Economic Roles of Periodic Contributions in the Guaranteed Deposit Compensation System of the Republic of Belarus", prepared by Sergey Kisel, Head of the Department for Analysis of Banking Activities and Premiums Control, was published.
The text of the article can be found at the link.
When placing their savings in a bank, depositors often ask themselves questions like, "What if something happens and the bank's license is revoked?" or "If it goes bankrupt, who will return my money and how?" Many questions arise. It is therefore important to remember that Kazakhstan currently has a deposit protection system that ensures the return of savings when an insured event occurs at a bank (revocation of its license). This process is regulated by the Kazakhstan Deposit Insurance Fund (KDIF).
On April 8, 2024, the Chairman of the Cabinet of Ministers of the Kyrgyz Republic, A. Japarov, signed the Cabinet of Ministers' resolutions "On the Reorganization of the Deposit Protection Agency of the Kyrgyz Republic" and "On the Approval of the Regulation on the Procedure for Considering Appeals from Distressed Borrowers and Other Financial and Credit Organizations".
Starting from March 19, 2024, an application for reimbursement can be submitted remotely on the website of the State Corporation "Deposit Insurance Agency" (DIA) or through the Unified Portal of Government Services (Gosuslugi).
This became possible after amendments to the Federal Law "On the Insurance of Deposits in Banks of the Russian Federation" came into force.
The Kazakhstan Deposit Insurance Fund (KDIF) plays a crucial role in ensuring the stability of the country's financial system by protecting the rights and interests of depositors in the deposit guarantee system member banks (all Kazakhstani banks except for Islamic banks). In the event that a member bank's license to conduct all banking operations is revoked, KDIF pays guarantee compensation to its depositors in the manner and within the timeframes established by law.
Today, any adult citizen can easily open a deposit and/or account at a second-tier bank. In recent years, this process has been significantly simplified thanks to the development of mobile banking applications and internet banking. As a result, with just a few clicks and without leaving home, you can become a full-fledged client of a bank. It is worth noting that signing a bank deposit and/or bank account agreement online requires the depositor only to check a box indicating they have read it. However, in the modern world, where time is the most valuable resource, many depositors often do not even read the bank deposit and/or bank account agreement, missing many essential and genuinely important points.
An international conference titled "Success Story: 20 years of the Russian Deposit Insurance System " was held in Moscow, organized by the State Corporation "Deposit Insurance Agency" (DIA).
The event was attended by
representatives of legislative and executive authorities, the banking and expert communities, and deposit insurers from 20 countries, including all EAEU member states.
The main theme of the conference was the improvement of mechanisms for protecting depositors' savings.
In accordance with legal requirements, second-tier banks are obligated to inform their clients about their participation in the deposit guarantee system. When establishing a bank account or deposit agreement, banks must also provide notification on the terms and procedures for guarantee payments, using the form established by the Kazakhstan Deposit Insurance Fund (KDIF).
The wide array of deposit products on the market can often lead to confusion among depositors regarding the key terms that determine the deposit type and its corresponding guarantee amount, which is payable in the event of a bank's license revocation.
In the Republic of Belarus, deposits of individuals, regardless of their amount, number, or currency, are subject to 100% reimbursement in the event the National Bank decides to revoke a bank's special permit (license) for banking activities, which grants the right to conduct the banking operation of attracting funds from individuals into bank deposits, either in whole or in part. The reimbursement of funds in Belarusian rubles and foreign currency, placed in accounts and/or deposits in banks by individuals acting as sole proprietors when concluding bank account and/or bank deposit agreements, is carried out in the amounts established by the legislation of the Republic of Belarus.
