Volume of deposits of population at commercial banks increased by 7.4 times in last five years, a roundtable in Tashkent said.

Fund for guaranteeing deposits of population at banks, Uzbekistan Banking Association and Central Bank organized the roundtable, which was dedicated to implementation of resolution of Cabinet of Ministers “On measures on realization of Law Law “On guaranteeing protection of citizens’ deposits at banks” dated 19 September 2002.

Official of the fund for guaranteeing deposits said that the growth of deposit connected with fast development of economy, reforms in banking system and increase of real incomes of population.

Fund for guaranteeing deposits of population at banks was founded in line with the resolution of the Cabinet of Ministers No.326 dated 19 September 2002 to implement the Law “On guaranteeing protection of citizens’ deposits at banks” adopted in April 2002 at the eight session of Oliy Majlis of the second convocation.

The fund is a legal entity and operates with commercial banks on the basis of agreements.

The main aim of the abovementioned law is, first of all, social protection of the population and protection of rights and interests of bank depositors. The other aim is to increase people’s trust in the banking system and attract free funds to deposits at commercial banks.

The fund guarantees payment of compensation on deposits in case the Central Bank withdraws the license on banking activity, in terms and volumes established by the law.

If the balance of deposit is equivalent to 100 minimum wages established by the legislation on the day of license withdrawal, the depositor will receive the full sum of the deposit.

If the balance of deposit is higher than the size of 100 minimum wages, the fund will pay 90% of the deposit sum.

Payment of compensation is limited to the equivalent of 250 minimum wages. However, the depositor has the right to receive compensation higher than 250 minimum wages. This can be requested from the bank’s liquidation commission determined by the bank’s shareholders, but not the fund.

As of 9 June 2006, 27 commercial banks have agreements with the Fund for guaranteeing deposits of population at banks.