Online Reporter
Ivan Zhakata
Herald Correspondent
THE proposed Deposit Protection Corporation (DPC) Amendment Bill will establish a legal framework for resolving failing financial institutions, plugging long-standing legal gaps and strengthening Zimbabwe’s financial sector.
Speaking on the sidelines of the Deposit Protection Corporation Amendment Bill workshop in Harare on Tuesday, DPC board chairperson Mr Canaan Dube said the proposed legislation would enhance depositor protection while aligning Zimbabwe’s financial regulatory framework with international best practices.
“The Bill we have been interrogating represents a milestone in our legislative journey. It establishes a dedicated insolvency framework for failing institutions, closing a legal void that has long existed and ensuring the swift, fair and orderly resolution of distressed institutions,” he said.
Mr Dube said the proposed amendments would empower the corporation to resolve failing financial institutions, safeguard depositors’ funds, prevent asset stripping and boost confidence in Zimbabwe’s banking sector.
He said the Bill would also strengthen governance structures, enhance compliance and revise civil penalties to ensure the country’s deposit protection framework meets modern international standards.
“These reforms will not only protect depositors but will also strengthen financial stability and resilience in our economy,” he said.
Mr Dube said amending legislation was a continuous process aimed at identifying weaknesses in existing laws and ensuring they remained responsive to emerging challenges.
“Amending an Act of Parliament is a process. It is about identifying gaps and seeking to close those gaps. It is never an easy process, but when the people of this country come together to challenge ideas and determine what needs to be done to improve legislation, nothing less than good is expected,” he said.
He commended stakeholders for their contributions during the consultative workshop, saying Parliament would consider the submissions before the Bill proceeds through the legislative process.
Mr Dube said no legislation could ever be regarded as perfect, noting that laws must continue evolving to respond to changes in the financial sector.
The DPC Amendment Bill is expected to provide the corporation with a clear legal mandate to resolve distressed financial institutions, strengthen depositor protection and reinforce the stability of Zimbabwe’s financial system.
