Deposit Protection System
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Deposit Protection System
The deposit protection system is a state mechanism that ensures compensation payments to depositors in accordance with the law in the event of a guaranteed case.
Key Definitions
Guaranteed Deposit
A deposit placed in a participating bank that meets legal requirements.
Guaranteed Case
Occurs when a bank’s license is revoked or when liquidation/bankruptcy proceedings begin..
Compensation
The amount paid to a depositor upon the occurrence of a guaranteed case.
Guarantee Amount
Up to 1,000,000 KGS per depositor.
Purpose of the System
- Protection of depositors’ rights and deposit security;
- Strengthening trust in the banking system;
- Supporting financial stability;
- Ensuring compensation payments through a simplified procedure.
Which Deposits Are Protected?
Deposits of individuals and individual entrepreneurs are protected under the deposit protection system.
Which Deposits Are Not Protected?
- Deposits belonging to employees of the participating bank or financial institution;
- Deposits placed by professional consultants and external auditors;
- Deposits of legal entities placed as part of business activities;
- Deposits subject to seizure or legal restrictions;
- Deposits placed in bank branches located outside the territory of the Kyrgyz Republic.
How Does the System Work?
A Guaranteed Case Is Declared
A guaranteed case occurs when a bank’s license is revoked or liquidation proceedings begin.
Official Information Is Published
The Agency publishes official information on payment procedures, timelines, and the agent bank.
The Depositor Submits Documents
The depositor applies to the agent bank using the prescribed application form and required documents.
Compensation Is Paid
Compensation is paid in accordance with the law. Foreign currency deposits are paid in KGS at the official exchange rate.