The Ministry of Economy and Commerce of Kyrgyzstan proposes to submit amendments to the Law on Protection of Bank Deposits for public discussion.
The drafters explained that they would initiate an increase in the amount of compensation from 200,000 to 400,000 soms on deposits to depositors of commercial banks, microfinance and housing construction credit companies, if they become bankrupt.
The higher the level of insurance coverage, the higher is the deposit base, which is one of the sources of resources for the lending activities of banks.
Kyrgyzstan has one of the lowest levels of compensation on deposits (200,000 soms, approximately $2,420) among the countries of the CIS and the EAEU. It reaches $39,599 in Kazakhstan, in Russia — $18,933, in Armenia — $30,617.
The Ministry of Economy believes that the increase in insurance coverage will increase the confidence of the population in bank savings and in the conditions of proper supervision of commercial banks by the National Bank.
