Tashkent, Uzbekistan (UzDaily.com) — During the third plenary session of the Senate of the Oliy Majlis, the Law "On Guarantees for the Protection of Deposits in Banks" was reviewed and approved.

During the discussions, senators highlighted that systematic efforts have been undertaken in recent years to ensure financial stability, foster a competitive environment for conducting business in the banking sector, and develop a legal framework that meets international standards.

Particular attention was given to improving the deposit guarantee system, which contributes to the long-term stability of the country’s banking and financial sector and aligns this system with advanced international practices.

The law defines key concepts such as a guaranteed event, the object of guarantee, guaranteed deposit, and compensation for guaranteed deposits.

The document designates the Deposit Guarantee Agency as the authorized body responsible for guaranteeing the protection of bank deposits, outlining its status, rights, responsibilities, and operational procedures.

One of the law’s key provisions is the payment of compensation by the Agency in the event of a guaranteed occurrence. According to the law, the compensation amount for a single depositor in one bank will fully cover the remaining balance of the guaranteed object if it does not exceed 200 million soums.

The law also provides for a gradual reduction in the time frame for compensating depositors in the event of a bank’s liquidation. Starting from 1 January 2025, payments will be made within 20 working days; from 1 January 2026, within 15 working days; and from 1 January 2027, within 7 working days.

Additionally, in the case of a bank’s bankruptcy, the depositor’s claims against the bank will transfer to the Agency, as it assumes the obligation to reimburse depositor funds.

The adoption of this law aims to ensure the safety of funds belonging to the public and entrepreneurs, strengthen the stability of the banking system, and expedite the compensation process in the event of a guaranteed occurrence.

Following the discussions, the Senate approved the law.