ASTANA, Kazakhstan, February 24. Starting on March 1, the Kazakhstan Deposit Guarantee Fund (KDGF) intends to do away with the maximum interest rates on tenge deposits for all Kazakhstani banks, Trend reports.
Only specific banks have been subject to this system since 2024. The new regulations will give banks more leeway to adjust deposit rates in response to fluctuations in the market. In order to prevent further threats to the banking system, it is necessary to enhance systemic risk contributions for less capitalized financial institutions that provide rates higher than the market.
To avoid excessive deposit attraction tactics, the KDGF stressed that maximum rates had been in existence since 2008. The growth of the banking industry, however, prompted the fund to opt to loosen laws and do away with these constraints. Simultaneously, all banks will be required to adhere to the maximum rates for foreign currency deposits.
Thus, come March 1, the curtain will fall on the publication of maximum interest rates for tenge deposits, and the KDGF will take the reins, keeping everyone in the loop about the market rates on the deposit scene.
Earlier, the KDGF reported that Kazakhstani banks continue to selectively raise deposit rates. According to the results of the February monitoring, it became known that three banks had raised rates for non-term deposits, one for term deposits with the right to replenish, and two banks for savings deposits without the right to replenish.
