He says amendments are planned in the legislation after Royal Bank. The amendments aim to meet legislation the international standards and improve deposit returning mechanism after Royal Bank’s bankruptcy: “Several issues appeared in practical work of deposit insurance mechanism as a result of bankruptcy of Royal Bank and they were cleared and amendments were prepared for legislation”.
He mentioned that list of insured deposits will be extended after amendments. So, 3 of 10 existing cases on uninsured deposits are abolished. Consequently, the deposits of individual entrepreneurs will be insured after amendments. Besides, deposits of persons who have both credit and savings in the bank will be insured. At last, the guaranteed deposits will also be insured.
In the future, bank deposits of legal entities will also be insured.
According to amendments, all three group deposits will be insured within the existing frames (maximum sum of deposits –
Expected other amendment is related with the period of starting to return lost deposits. According to existing legislation, the deposits can be returned by the Fund after 90 days. But, according to amendments this period is 45 days.
Javadov said that the amendments have already been affirmed by Fund’s Board of Trustees. After considering by state bodies, it will be submitted to Presidential Administration.
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