History of the Agency
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- History of the Agency
- The deposit protection system in the Kyrgyz Republic was introduced through the establishment of the Deposit Protection Agency pursuant to Resolution No. 387 of the Government of the Kyrgyz Republic dated July 18, 2008.
- The legal basis of the system is the Law of the Kyrgyz Republic “On Protection of Bank Deposits”, which entered into force on August 13, 2008.
- The Regulation on the Agency was approved by Resolution No. 479 dated August 28, 2008; its main objective is to establish the deposit protection system and support the stability of the financial system.
- In 2009, the compensation amount was increased from 20,000 KGS to 100,000 KGS, and operating banks were simultaneously included in the register of participating banks.
- In 2023, the compensation amount was increased from 200,000 KGS to 1,000,000 KGS.
Stages of Development of the Deposit Protection System
Below are the key years and major events reflected in official documents.
2008 — Launch of the System
By Resolution No. 387 of the Government of the Kyrgyz Republic dated July 18, 2008, the Deposit Protection Agency was established; the Law of the Kyrgyz Republic
“On Protection of Bank Deposits” entered into force on August 13, 2008.
- Regulation on the Agency was approved by Resolution No. 479 dated August 28, 2008.
2009 — Establishment of the Fund and Increase in Compensation
- The Deposit Protection Fund was established
- Compensation amount increased from KGS 20,000 to KGS 100,000.
- Reform implemented: the Agency was transferred under the authority of the Ministry of Finance (Presidential Decree No. 425 dated October 26, 2009).
2010–2014 — Institutional Development
- Accession to the International Association of Deposit Insurers (IADI).
- Contribution calculation procedure for participants was established.
- Investment opportunities of the Fund were expanded (2010 amendments).
2015 — Faster Payouts and a Guarantee Event
- Compensation payout period reduced from 60 to 30 days.
- Protection extended to individual entrepreneurs.
- Occurrence of a guarantee event related to Manas Bank OJSC.
2016 — Limits and Target Fund Size
- Compensation amount increased from KGS 100,000 to KGS 200,000.
- Target size of the Deposit Protection Fund reduced from 15% to 12%.
- Use of Fund resources allowed during bank resolution procedures.
2019 — Expansion of Participants
- Inclusion of microfinance companies and housing savings credit companies into the system.
2023 — Increase of Compensation to KGS 1 Million
- Compensation amount increased from KGS 200,000 to KGS 1,000,000.
2024 — Reorganization
- Reorganization of the Deposit Protection Agency of the Kyrgyz Republic and its merger with the Bank Resolution Agency.
Agency Logo
Meaning of the Deposit Protection Fund Logo
The logo of the Deposit Protection Fund symbolizes the Fund’s core mission — protecting depositors’ funds, ensuring financial stability, and strengthening public trust.