National Bank to make suggestions on deposit insurance scheme for individuals

Within a month’s time the National Bank of Kazakhstan is to draft and submit to the national Parliament suggestions on deposit insurance scheme for individuals, Bnews.kz reported. “The legislation currently in place envisages that before January 2012 the individual retail deposit amount guaranteed by the state stands at KZT 5 million ($34.2 thousand). Next year the amount is to be reduced to KZT 1 million ($6.8 thousand). Weather it remains as is or is changed, respective amendments are to be introduced in the applicable legislation”, Vice Chairman of the National Bank Daniyar Akishev told journalists on the sidelines of a plenary sitting in the Majilis (lower chamber) June 15. According to Mr. Akishev , the Bank is in favor of keeping the current parameters. “We are considering possibilities to keep the individual retail deposit amount guaranteed by the state”, he said. Kazakhstan had reinforced its deposit insurance scheme by increasing the individual retail deposit amount guaranteed by the state to KZT 5 million ($34.2 thousand) from KZT 700 thousand ($4.7 thousand) late 2008. This way the Government tried to strengthen the local population’s confidence in Kazakh financial institutions partly undermined by the global financial crisis.