GOALS AND OBJECTIVES OF THE AGENCY
The Deposit Protection Agency of the Kyrgyz Republic is a legal entity with an independent organizational and legal form, created on August 29, 2008. The Agency is an independent non-profit organization that does not pursue the goal of making a profit, endowed with the powers, rights and responsibilities established in the Law of the Kyrgyz Republic “On the Protection of Bank Deposits”.
The main goal of the Agency is to create a deposit protection system and promote the stability of the country’s financial system, which is ensured by reducing the incentives for owners of insured deposits to withdraw them from banks for fear of losing their savings. The feasibility for the economy and banking sector of introducing such a deposit protection mechanism as a way to increase public confidence in commercial banks and attract additional financial resources to bank deposits, which today are stored mainly outside the banking sector, not working either for their owners or for the country’s economy, as world practice shows, it is relevant and justified.
The Deposit Protection Agency performs the following functions:
- maintaining a register of participating banks;
- keeping records of depositors’ claims, amounts to be paid and amounts of compensation paid on deposits;
- payment to depositors subject to the Law of the Kyrgyz Republic “On the Protection of Bank Deposits”, amounts determined by the above Law;
- calculation of the amount of contributions and collection of contributions to the Deposit Protection Fund;
- carrying out the necessary actions aimed at ensuring timely and full payment of contributions;
- establishment and imposition of fines and penalties for late payment of contributions;
- management of the assets of the Deposit Protection Fund in the manner and within the limits established by the Law of the Kyrgyz Republic “On the Protection of Bank Deposits”.
The agency is a government body that guarantees and insures the financial interests of the population in the internal savings system, paying depositors the amounts of deposits and interest on them upon the occurrence of a guarantee event.
The Agency operates in accordance with its mission to provide effective and efficient protection of individual deposits.
To achieve the mission goal, the Agency carried out the following areas of work:
The Agency in its activities adheres to its vision to comply with the best international practices of deposit insurers with the impeccable performance of the following functions:
- maintaining a register of participating banks;
- accounting and collection of insurance premiums;
- effective management of the assets of the Deposit Protection Fund;
- taking into account the demands of depositors and compensation to depositors of banks participating in the compensation system in the event of bank insolvency;
- carrying out constant public information and other actions to achieve the goals.
To achieve its mission and vision, the Agency relies on core corporate values to foster a culture of employee performance through excellence and professionalism, integrity and reliability, communication and teamwork, respect and fairness.
The formation of an independent Deposit Protection Agency and the actual implementation of a deposit protection system in the Kyrgyz Republic clearly prove the timeliness and importance of the measures taken to further increase public confidence in the banking system and ensure financial and social stability in the country against the background of external challenges associated with the financial crisis in the world.
Among the important and primary tasks facing the Agency are the continued maintenance of an effective deposit protection system that meets international standards through promoting the institutional development of the Agency, improving the Law on the Deposit Protection System and increasing the transparency of its activities in order to increase public awareness. To this end, the Agency has a solid foundation and appropriate base in order to continue effective activities to achieve the mission chosen by the Agency in protecting the rights and interests of depositors.