The Kazakhstani Deposit Guarantee Fund JSC (hereinafter: KDGF) was established in 1999 to manage the deposit guarantee system. The Fund is a non-profit organization.  The sole shareholder of the Fund (since its establishment) is the National Bank of the Republic of Kazakhstan.

The Fund, which is mainly replenished through the contributions from banks participating in the deposit guarantee system, forms a special reserve for the payment of guaranteed compensation to depositors in case the license is withdrawn from a bank to conduct all the operations. The special reserve is also replenished by investment income from the placement of its own assets and assets of the KDGF special reserve, as well as by money received from liquidation commissions of banks to meet the requirements of the KDGF for previously paid compensation.

Pursuant to the Law of the Republic of Kazakhstan "On Compulsory Guarantee of Deposits Placed in Second-Tier Banks of the Republic of Kazakhstan", a guarantee reimbursement is the amount of money that the KDGF is obliged to pay to a depositor under a guaranteed deposit.

The legal basis of the deposit guarantee system, as well as the rights and obligations of its participants are determined by the Law of the Republic of Kazakhstan "On Compulsory Guarantee of Deposits Placed in Second-Tier Banks of the Republic of Kazakhstan".

What is a guarantee reimbursement?

Pursuant to the Law of the Republic of Kazakhstan "On Compulsory Guarantee of Deposits Placed in Second-Tier Banks of the Republic of Kazakhstan", a guarantee reimbursement is the amount of money that the KDGF is obliged to pay to a depositor under a guaranteed deposit.

Which banks participate in the deposit guarantee system?

Pursuant to the legislation of the Republic of Kazakhstan, any bank that has received a license from the National Bank of the Republic of Kazakhstan to accept deposits, open and maintain bank accounts of individuals, automatically becomes a participant in the deposit guarantee system, which means that a deposit placed in such a bank is protected by the KDGF. The relevant list of banks participating in the compulsory deposit guarantee system is available on the KDGF website (www.kdif.kz).

Which deposits are subject to guarantee?

The objects of the guarantee are deposits, funds of individuals and individual entrepreneurs held on payment cards and bank accounts, in domestic and foreign currency. At the same time, the bank should be a participant in the mandatory deposit guarantee system. To date, all second-tier banks participate in the system, except for Islamic banks that have their own deposit products.

In the event of revocation of the bank's license to carry out all operations, the holder of a bank account/ deposit receives a guarantee refund for it within the limit of the guarantee refund established by the law:

• KZT 20 million: on savings deposits in tenge;
• KZT 10 million: on cards, accounts and other deposits in tenge;
• KZT 5 million: on cards, accounts and deposits in foreign currency (equivalent to the market exchange rate established on the date of revocation of a bank's license).

The KDGF guarantees not only the amount deposited by a customer, but also the interest accrued on it at the time of the insured event. In this case, the guarantee applies to the entire amount of deposit within the maximum guarantee.

If a depositor has several deposits in one bank, different in type and currency, and also has funds in current and card accounts, then the amount of the guarantee refund is calculated from the amount of balances on all accounts at the date of revocation of the bank's license, taking into account the amount of the guarantee for each type of deposit (5, 10 or 20 million). The total amount of the payment will not exceed KZT 20 million, subject to the availability of savings deposits in local currency. If the amount of the deposit exceeds the amount of the guaranteed refund, the KDGF will pay compensation up to the maximum amount. A depositor has the right to receive the balance in excess of this amount from the liquidation commission of a banking compulsory liquidation in the order of priority established by the Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan".

What does KDGF guarantee NOT cover?

The KDGF guarantee does not cover metal accounts of individuals, money and valuables placed in bank cells, deposit certificates, deposits of legal entities and deposits placed in Islamic banks in Kazakhstan.

Does the guarantee cover the deposits placed in several banks simultaneously?

If you have deposits in more than one bank participating in the compulsory deposit guarantee system, then your deposits are guaranteed separately in each of these banks within the maximum amount of guaranteed reimbursement.

How will the guarantee on deposits placed in two different banks be paid if these two banks merge?

Pursuant to the Law of the Republic of Kazakhstan "On Banks and Banking Activities in the Republic of Kazakhstan", after transfer of obligations of an affiliated bank to a bank to which the accession is being carried out, fulfillment of obligations to depositors, including maintenance of transferred bank accounts, is carried out by a bank to which the accession is being carried out.

Depositors (individuals) need to remember that deposit guarantee limits are set for one depositor in one bank, including those reorganized as a result of bank mergers.

If two (or more) banks merge, customers with deposits in each of these banks need to be aware of the total amount of deposits in these banks. Upon completion of the merger, all cash deposits in the merged bank will be guaranteed by the KDGF up to the maximum amount of a single bank deposit guarantee. Thus, as mentioned above, the total guarantee compensation per depositor will not exceed KZT 20 million.

To estimate the amount of the guarantee refund use a special calculator available on the KDGF website (www.kdif.kz).

Contact details of KDGF JSC