Almaty Hosted an International Conference on Financial Literacy
From February 25 to 28, 2019, Kazakhstan Deposit Insurance Fund (KDIF) in partnership with International Association of Deposit Insurers (IADI) and with support of National Bank of Kazakhstan was the host of a number of international events in Almaty.
- February 25 – 26, IADI committees held meetings to discuss the matters of risk management and internal control, insurance of deposits in Islamic banks, financial inclusion, development of guidance and conduct of research, and development of risk-based member banks’ premium systems. Three regional committees of IADI also held their meetings;
- February 27, the 57th meeting of the Executive Council, the highest governing body of IADI, was held to review the IADI draft research and guidance documents and make decisions on operational and strategic affairs of the Association;
- February 28, International Conference “Deposit Insurance and Public: Promoting Communication, Financial Literacy, and Transparency” was held. On the same day, a media briefing was arranged.
International Conference was attended by 140 participants from 40 countries. During the seven sessions of the event, senior executives and leading experts from deposit insurance organizations of Canada, Colombia, Great Britain, Indonesia, Japan, Kenya, Philippines, Poland, Russia, South Korea, Turkey, Ukraine, and the USA shared their experience and best practice in communication and financial education. The representatives of Organization for Economic Cooperation and Development (OECD) and the Institute of Financial Stability under Bank for International Settlements (BIS) made reports on the transparency standards in deposit insurance organizations. A representative of Alliance for Financial Inclusion (AFI) accentuated the importance of financial literacy to raise financial inclusion. The representatives of National Bank of the Republic of Kazakhstan, including Deputy Governor Mr. Zhanat Kurmanov, Financial Stability Department Director Mr. Sabit Khakimzhanov, and Senior Specialist at the Financial Services Consumers’ Rights Protection and Communication Division Mr. Dmitry Akmayev presented the measures dedicated to stabilization of financial market and financial literacy in Kazakhstan. Deputy Director of the Banking Sector Development Center Mr. Ruslan Ushurbakiyev from Kazakhstan Financiers Association also made a report.
Raising the level of financial literacy among public is a strategic objective requiring a comprehensive study from the perspective of successful international experience. In the long run, sufficient level of financial literacy is a driver to competitive financial market, resilient financial system and legislative protection of citizens.
International experts also seek to exchange experience and ideas regarding effective communication and increase in the level of financial literacy among public. International Conference and exchange of views and opinions are to spur open and extensive discussion and common strategy dedicated to raising financial literacy and culture of financial conduct.
Kazakhstan and KDIF strive to implement the IADI international standards in deposit insurance and therefore set the goal to support development of competitive financial market and strengthen the legal protection of citizens relying on the IADI best practices and standards. Based on the need for more effective communication, transparency, and further action in financial education among public, this high-level event in Kazakhstan is expected to draw attention of media, society and public. The exchange of experience under International Conference enables all parties to study and apply the most effective and successful methods and to determine further action.
The framework of IADI combines immense expertise, experience and analytical research in deposit insurance. IADI represents 110 member organizations, including 86 deposit insurers, 10 central banks and government agencies, and 14 partners including World Bank, International Monetary Fund, European Bank for Reconstruction and Development and Alliance for Financial Inclusion. Basel Committee on Banking Supervision (BCBS) is directly involved in development of IADI standards. Membership at the Association provides obvious advantages for those countries that strive to develop their deposit insurance systems via access to knowledge, exchange of experience and independent assessment of deposit insurance system.
February 27, in the course of KDIF–IADI event, a Memorandum of Cooperation was signed between the deposit insurance organizations representing the Eurasian Economic Union (EEU) member states the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, and Russian Federation. The Memorandum governs exchange of experience, determination of standards and best practices as the strategic guidelines for development of deposit insurance systems, and provides for a framework for a common approach in liquidation, resolution and bankruptcy of financial organizations in the Eurasian Economic Union member states.
In the future, the parties to the Memorandum are committed to establish effective framework to exchange experience and knowledge in professional matters, and to improve both the legislation governing deposit insurance in each member state and the regulatory framework of the EEU. By signing the Memorandum, the parties agree to establish a dedicated council representing the senior executive officers of the member organizations and a joint working group of the leading experts.
Content of the International Conference will be available on the KDIF website www.kdif.kz.
Kazakhstan Deposit Insurance Fund (KDIF)
is an organization of the National Bank of the Republic of Kazakhstan established in 1999 to protect the rights and legitimate interests of depositors of second-tier banks.
International Association of Deposit Insurance Systems (IADI)
is a professional association representing 110 deposit insurance organizations, central banks and international financial organizations. The Association provides for forum to exchange experience between its members in order to strengthen financial stability around the world. The IADI was established in May 2002 and is domiciled at the Bank for International Settlements in Basel (Switzerland).
Eurasian Economic Union (EEU)
is an international organization of regional economic integration established by international treaty on May 29, 2014. The EEU ensures freedom of movement of goods, services, capital and labor, as well as the implementation of a coordinated uniform policy in all sectors of economy. Currently, EEU represents the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation.