There are plans to link contributions to the deposit insurance fund to the banks' risk levels

On May 22, the Kyrgyzstan Deposit Insurance Agency will host a roundtable in Bishkek dedicated to the development of the deposit insurance system. The discussion will focus on a potential transition to a differentiated system of bank contributions to the Deposit Insurance Fund, under which the amount of payments would depend on the risk level of each individual bank.

The event will be attended by representatives of government agencies, the National Bank, commercial banks, microfinance organizations, international institutions, and industry associations.

One of the key topics will be the reform of the mechanism for forming the Deposit Protection Fund. Currently, participants in the system make contributions under the existing model; however, an approach is being discussed whereby riskier banks could pay more, while more stable ones would pay less. Such a mechanism aligns with international deposit insurance principles and is widely applied in developed jurisdictions.

Separately, participants will consider the possibility of a phased increase in the size of the Deposit Protection Fund. The idea is to strengthen the fund’s financial stability and enhance its ability to meet its obligations to depositors, including in stress scenarios.

Other topics include the introduction of early warning tools, strengthening interagency cooperation, and improving financial literacy among the public.

Following the roundtable, practical recommendations on the further development of the deposit protection system are expected to be prepared. If the proposals are implemented, this could be a step toward a more flexible and risk-sensitive deposit insurance model in Kyrgyzstan.