National Bank of Kazakhstan will introduce the obligatory insurance of the deposits

/iRBIS, Nov.03, 99/ - According REUTERS, which cites Grigory Marchenko, the chapter of the National Bank of Kazakhstan (NB), system of obligatory collective insurance of the business banks deposits will be established. For this purpose NB establishes the Fund of warranting with the authorized capital of one billion tenge. The fund will be created after Parliament's acceptance of respective amendments in the insurance and bank legislation. Marchenko has informed, that the fund will be the Closed JSC owned by the NB. The authorized capital of 1.0 billion tenges ($7.1 million) will be deposited by NB. The banks will transfer there 0.175 to 0.350% from their deposits. Despite of a obligatory character, the system of collective insurance will be while limited, at the first stage it will include only 11 banks answering, in NB opinion, international service standards. Now in Kazakhstan there are about 70 business banks. The system will while cover only the fixed deposits and will guarantee 100% compensation only for deposits less than 200,000 per man, the deposits over 200,000 tenge will be provided at a decreasing scale. Referring on expert valuations, Marchenco has told, that total cash belongs to population makes about $1.5 billion, however only half from it can be considered as savings, other half is used as instrument of payment, for example in so-called "shuttle trade". According to NB data, total volume of the banks' deposits has made 126.4 billion tenges or $894 million. 41.2 billion tenges or $292 million or 32.6% belongs to the deposits of population. Besides approximately $400 million is saved by the Pension Funds of Kazakhstan. Nine persons will form the board of insurance fund, including three - from the National Bank, four - from the business banks, one Association of the financiers representative, and one - from the Ministry of Finance. Marchenko plans, that the National Bank in the intermediate term can transmit to the Fund a part of its functions of a banking system control.