KDIF will discontinue setting recommended interest rates for bank deposits in Tenge from March 1, 2025Kazakhstan Deposit Insurance Fund (KDIF) will discontinue from March 1 of this year setting recommended interest rate caps for bank deposits denominated in Tenge, KDIF said in a press release on Monday."We expect that the implemented reform will give the banks more freedom in setting interest rates on their deposits. Interest rates on Tenge-denominated deposits will be determined by the market," KDIF Chairman Adil Utembayev is quoted as saying.The new approach will increase healthy competition among the banks and will give a new impetus to development of the retail deposit market, he added.From 2008 to 2018, KDIF set recommended maximum rates for all banks. If the banks’ actual rates were above the recommended ceilings, such banks had to pay a significantly larger contribution to KDIF’s reserves. Despite the fact that such practice effectively limited the aggressive deposit policies of the banks, it was, in fact, direct interference in the operation of the market, the KDIF press service said.Before 2018 KDIF had monthly set ceiling rates for deposits denominated in Tenge and foreign currencies but in 2018 KDIF started publishing recommended maximum rates for each category of the deposits. In October 2018 Kazakhstan introduced the following classification for deposits: savings deposits, fixed deposits and current deposits.From January 1, 2024 KDIF stopped setting ceiling rates for Tenge-denominated deposits for most of the banks.KDIF’s guarantees apply to all types of deposits. The maximum guarantee value is set at 20 million tenge for Tenge-denominated savings deposits, at 10 million tenge for other deposits in the national currency, at 5 million tenge for deposits in foreign currencies. (ICE ALMATY)

Fonte notizia: INTERFAX