The system ensures that depositors need not independently assess a bank's stability: upon license revocation or other insurable events, compensation is paid by a specialized fund rather than the bank itself. Participating banks contribute to the fund.
The guarantee applies to individual deposits with limitations: on eligible persons, account types, and maximum compensation per depositor per bank. Funds placed in different banks are typically protected separately for each bank, while multiple deposits at one bank are combined.
In Uzbekistan, this function is performed by the Deposit Guarantee Fund for Citizens in Banks. The specific compensation amount, list of covered products, and payment procedures are established by legislation and periodically reviewed, so current parameters should be verified when opening a deposit. It is important to note that the guarantee does not apply to brokerage accounts and securities investments.