Legal Status

The Deposit and Savings Insurance Fund of Tajikistan (hereinafter referred to as the Fund) was established based on the Law of the Republic of Tajikistan “On Deposit and Savings Insurance”. Its primary objective is to protect the rights and lawful interests of depositors by paying insurance compensation and strengthening public trust in the banking system of the Republic of Tajikistan.

The Fund is a non-commercial legal entity that has an independent balance sheet and a seal, operating according to the Law and its charter. The Fund’s purpose is to protect depositors’ deposits and savings from the risk of bankruptcy of credit institutions.

In case of an insurance event at a credit institution, the Fund is obliged to compensate the insured funds of depositors within the maximum coverage limit. Banks and microcredit deposit organizations that are members of the Fund are listed in the Register of Credit Institutions of the Deposit and Savings Insurance System and hold a Membership Certificate. Deposit and savings insurance is provided by the fund and credit institutions, with no costs incurred by depositors, as all insurance expenses are borne by the credit institutions and the Fund.

Mission

The Fund’s mission is to:

Protect the rights and lawful interests of depositors through the payment of insurance compensation;  Ensure the functioning of the deposit and savings insurance system; and contribute to the stability of the financial system and strengthen public trust in the banking system of the Republic of Tajikistan.

Vision

To be an effective and successful deposit and savings insurance organization, fulfilling its mission while considering the best global practices.

Values

The key values and principles guiding the Fund’s activities are:

Social orientation, Transparency, Professionalism, Integrity, and Financial responsibility.

Main Functions

To achieve its goals, the Fund performs the following functions:

• Timely determination and reimbursement of insurance compensation to depositors.
• Maintains the registry of credit institutions that are members of the Fund.
• Assesses, collects, and records contributions received from credit institutions and monitors the timeliness of the payments.
• Receives necessary information, reports, and data from credit institutions.
• Invests, manages, and places the Fund’s assets to accumulate the Fund’s resources.
• Participates in financing the restructuring of a credit institution, including the transfer of insured deposits and savings to another credit institution or an intermediary bank, to meet insurance obligations.
• Borrows funds from the Government in case of the Fund’s deficit.
• Requests the National Bank of Tajikistan to take corrective actions and measures against credit institutions that do not comply with the Law.
• Issues orders to credit institutions as necessary and demands their implementation within the law.
• Issues normative acts (rules, instructions, etc.) and enforces their implementation.
• Promotes public trust in the banking system of Tajikistan by guaranteeing deposits and savings.
• Performs other functions necessary to achieve the Fund’s goals.

Fund Resources

According to the Law of the Republic of Tajikistan “On Deposit and Savings Insurance,” the Fund’s resources come from:

• Contributions from credit institutions that are members of the Fund.
• Income from investments.
• Borrowed funds, including those borrowed from the Government of the Republic of Tajikistan.
• Funds received from fulfilling the Fund’s obligations, including payments to depositors whose interests have been transferred to the Fund under the Law.
• Other receipts that are not prohibited by law.

The Fund’s resources are kept in accounts at the National Bank of Tajikistan. In the event of an insurance case, insurance compensation is paid to depositors from these funds. The maximum amount of the Fund’s resources is set at seven percent of the total amount of insured deposits and savings held in member credit institutions.

Investment Activities

To accumulate its assets, the Fund conducts investment activities and manages and allocates its funds according to its investment policy. The Fund may invest its resources in the following financial instruments:

• Government securities of the Republic of Tajikistan.
• Securities of the National Bank of Tajikistan.
• Securities of foreign governments or foreign central (national) banks with a high investment rating.
• Deposits at the National Bank of Tajikistan in national and foreign currencies.
• Securities of international financial organizations with one of the two highest ratings from rating agencies.
• Securities of international financial organizations in which the Government of the Republic of Tajikistan is a shareholder.

The Fund prioritizes investments based on the following principles: 1) Safety, 2) Liquidity, and 3) Profitability.