Home  Journals  Financial Analytics: Science and Experience  29(215) - 2014 August

Insurance of bank deposits in the Member States of the Common Free Market Zone

Available online: 2 August 2014

Subject Heading: Insurance business

JEL Classification: 

Pages: 33-40

In connection with the establishment of the Common Free Market Zone by Belarus, Kazakhstan and Russia, ongoing and planned steps to develop a system to protect the rights and interests of the consumers of financial services, particularly of banking one, becomes more relevant. On the basis of legislative and normative documents, the article provides the comparative characteristics of the given insurance protection of deposits of the population in each of the three member countries. The author compares, in particular, on the following positions: types of deposits covered by insurance; the definition of the term "accident"; indemnity and the currency of payment; documents, which are necessary for receiving of indemnity; deadline to apply for insurance indemnity and its implementation; the formation of fund of payments, including the amount of the fees paid by banks in the deposit insurance system; sources of replenishment of the fund's shortfall insurance payments for the performance of obligations to depositors. In addition, the paper considers the place of the appropriate institutions of each country in the operation of the mechanism of insurance of bank deposits: the Kazakhstani Fund for guarantee (insurance) of population' deposits, which was established as a joint-stock company, whose sole shareholder is the Kazakhstani National Bank; the Government-owned Agency for the guaranteed refund of bank deposits of individuals, which is subordinated to the Council of Ministers of the Republic of Belarus and the Belorussian National Bank; the Deposit Insurance Agency, which was set up by the Russian Federation in the form of the state corporation. The authors make conclusion that deposit insurance system that was established in all three member countries of the Common Free Market Zone with regard of many of its components resembles each other, but it has some important differences. Findings can be used in the framework of the national legislation of each country in terms of harmonization of the requirements for the establishment and functioning of deposit insurance system.

Keywords: insurance, bank deposit, guarantee fund, premium, contribution, loss occurrence

References:

1. Konkurentosposobnost' finansovykh rynkov Edinogo ekonomicheskogo prostranstva. [Competitiveness of the financial markets of the Common Free Market Zone]. Nauchno-issledovatel'skii finansovyi institut. Finansovyi zhurnal. – Scientific and Research Financial Institute. Financial Journal, 2014, no. 1, pp. 17–24.
2. Law of the Republic of Belarus “On Guaranteed refund of bank deposits of individuals” of July 08, 2008 № 369-z.
3. Decree of the President of the Republic of Belarus “On Safety guarantees of individuals’ funds placed on accounts and (or) in bank deposits” of November 04, 2008 № 22.
4. RF Federal Law “On Insurance of deposits of individuals in banks of the Russian Federation” of December 23, 2003 № 177-FZ.
5. Law of the Republic of Kazakhstan “On Obligatory insurance of deposits placed in second-tier banks of the Republic of Kazakhstan” of July 07, 2006.
6. Rykova I.N. Konkurentosposobnost' finansovykh rynkov Edinogo ekonomicheskogo prostranstva [Competitiveness of the financial markets of the Common Free Market Zone]. Bankovskoe delo – Banking, 2014, no. 6, pp. 78–83.

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ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

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