business and economy
National Bank boost capital of Deposit Insurance Fund
The National Bank contributed 14 billion tenge ($120 million) to increase the registered capital of Deposit Insurance Fund, Interfax-Kazakhstan reported.
The 80 percent increase in the fund capital is expected to build up people’s trust in the banking system, the National Bank of Kazakhstan said in a press release. Kazakh banks have been hit hard by the global liquidity crisis as they were cut off from funding sources overseas.
The Deposit Insurance Fund was established in 1999 to protect bank customers in case of a bankruptcy of a member of the deposit insurance system. Since its establishment the fund paid compensations to the clients of Komir Bank, Nauryz Bank and Valyut-Transit Bank. Currently 34 banks are members of the deposit insurance system.
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