KDIF insures all deposits of individuals
Maximum coverage limit for deposits in national currency is 10 million tenge, while foreign currency deposits are covered up to 5 million tenge
Deposit Insurance System in Kazakhstan
On September 4 – 5, International Technical Seminar & Conference “Core Principles for the Effective Deposit Insurance Systems, And Islamic Deposit Insurance” took place in Almaty, Kazakhstan. The event was conducted by Kazakhstan Deposit Insurance Fund in cooperation with IADI, International Association of Deposit Insurers.
The event consolidated senior executives and recognized experts in the deposit insurance industry from across 15 jurisdictions, including the representatives of Deposit Insurance Agency of Russia, Federal Deposit Insurance Corporation (FDIC, USA), as well as the participants from among the CIS countries, Japan, Korea, Malaysia, Indonesia, Turkey, Jordan, Poland, and Bulgaria. National Bank of Kazakhstan was represented by Mr. Oleg Smolyakov, Deputy Governor, and Mr. Sabit Khakimzhanov, Director of Financial Stability Department. Mr. Bissengali Tajiyakov, member of KDIF Board of Directors honored as Distinguished Worker in The Financial Industry of the Republic of Kazakhstan, also attended the event. IADI was represented by Mr. David Walker, Secretary General, Mr. Vijay Deshpande, IADI Advisor, and Mr. Nikolay Remchukov, Research Analyst of the IADI Secretariat.
The event participants discussed relevant issues and shared their practical experience in deposit insurance systems’ operation. Experts and senior executives representing Perbadanan Insurans Deposit Malaysia (PIDM), Lembaga Penjamin Simpanan (IDIC), Jordan Deposit Insurance Corporation (JODIC) shared their insights providing for compliance of Islamic deposit insurance provisions with the principles of Sharia. In the light of Islamic banking industry development perspectives in Kazakhstan, emergence of competitive market, and introduction of new retail banking products, KDIF keeps up to date with the global best practices and groundwork in Islamic deposit insurance.
Practical experience in problem bank resolution appeared to be another red-hot issue that received comprehensive coverage during the event. Senior executives and experts representing deposit insurance organizations of Russia (DIA), Ukraine (DGF), USA (FDIC), Japan (DICJ), Korea (KDIC), Indonesia (IDIC), and Poland (BGF) revisited their experience and developments.
In the course of the event’s agenda the representative of World Bank introduced a report on independent assessment of the Kazakhstani deposit insurance system in Kazakhstan against the IADI Core Principles to the event participants and the representatives of Kazakhstani financial media. The independent assessment which was conducted in 2016 by the World Bank officials did not reveal any incompliance with the Global best practices in such provisions and operations as deposit insurance system membership, reimbursing depositors, and recovering the assets of failed banks. The executives at World Bank and KDIF marked that in the course of trilateral meetings with engagement of the National Bank of Kazakhstan, the selected recommendations and strategic development initiatives were welcomed.
The International Association of Deposit Insurers (IADI) was formed in May 2002 to enhance the effectiveness of deposit insurance systems by promoting guidance and international cooperation. Members of IADI conduct research and produce guidance for the benefit of those jurisdictions seeking to establish or improve a deposit insurance system. IADI currently represents 84 deposit insurers from 85 jurisdictions. IADI is a non-profit organization constituted under Swiss Law and is domiciled at the Bank for International Settlements in Basel, Switzerland.