Savings of Kazakhstan citizens reach record 3.8 trillion tenge

January 29, 2014

Savings of Kazakhstan citizens have reached amonumental figure for the country, the total deposits are standing at 3.8trillion tenge. The KazakhstaniDeposit Insurance Fundguarantees safekeeping ofindividual’s deposits. The Fund revisesrecommendations onthe remunerationof deposits every quarter.The rate for deposits in tenge is 9% per annum, and the rate for deposits in foreigncurrency is4.5 per annum.

Bakhyt MAZHENOVA, CHAIRPERSON OF KAZAKHSTAN DEPOSIT INSURANCE FUND:
- If a bankexceeds ourrecommendedrates, it will have to paymore moneyto the fundin the form ofcontributions.Banksthat offera higher price are included in group C.This is a specialgroup, andbanks payusbig contributions.

The Fund recommends banks not to exceed certain remuneration rates on the deposits of individuals. The rates are set only for newly concluded contracts and do not apply to existing agreements. This measure is to bring Kazakhstan’s deposit policy of banks in compliance with the market’s current investment opportunities and trends in monetary policy.

Bakhyt MAZHENOVA, CHAIRPERSON OF KAZAKHSTAN DEPOSIT INSURANCE FUND:
- The main reason for this attraction of money at a high price, is often hidden problems of the bank, bank’s liquidity, asset’s quality, and so on. That is why the fund recommends certain deposit rates to regulate this process at least to a certain extent. But it does not mean that the bank cannot attract money at a higher interest rate.

Almaty and Astana, Kazakhstan’s 2 biggest citiesare consolidating 75% of all retail deposits via foreign currency. Such information was given and can be found on the website Ranking.kz. In 10 regions of Kazakhstan, the share of foreign deposits of the population is less than 30%. There is a minimum demand for foreign deposits in South Kazakhstan region. As the head of the Fund says, today the organization has more of a stable market than ever before.

Bakhyt MAZHENOVA, CHAIRPERSON OF KAZAKHSTAN DEPOSIT INSURANCE FUND:
- TheFund is sufficiently capitalized, and the reserve is 160 billion tenge without authorized capital and300 billion tenge with authorized capital. We have a strong support system of the Fund’s liquidity by the National Bank.

Kazakhstan is the first country of the former Soviet Union which established a Deposit Insurance Fund. The organization’s main task is to protect the rights and interests of their depositors. All individual’s deposits that are in tenge and foreign currency without remuneration are subject to obligatory insurance.