adminNgoni Dapira Business Correspondent
THE Deposit Protection Corporation hogged the limelight last week Thursday when it clinched an international award for being the Most Improved Deposit Insurer in the world at the 14th Annual General Meeting and Conference of the International Association of Deposit Insurers held in Kuala Lumpur, Malaysia. The International Association of Deposit Insurers was formed in May 2002 to enhance the effectiveness of deposit insurance systems by promoting guidance and international co-operation. It currently represents over 80 deposit insurers from around the world.
DPC chief executive officer, Mr John Chikura said in a press statement that the international award confirmed how the institution was adhering to international best practise to ensure stability in the country’s financial sector. DPC’s efforts to ensure stability in the country’s financial sector have not gone unnoticed as it has so far paid out $2,6 million to 9 495 depositors of six banks that were closed since 2012 as of August 31, 2015.
“The prestigious award which has raised the country’s flag high on the international front, further attests to DPC’s continued efforts to become a world-class deposit protection authority through efforts to enhance efficiency and improve compliance with international best practices in the administration of the organisation and the Deposit Protection Scheme,” read the statement.
DPC commenced operations on July 1, 2003 and its primary objective is to provide deposit protection to depositors in institutions licensed to operate banking or finance business in Zimbabwe, such as commercial banks, merchant banks, building societies, finance houses, discount houses and deposit-taking micro-finance banks.
Mr Chikura added that to assist in enhancing confidence in the financial system and contribute to financial stability for the benefit of the financial systems and economy at large public awareness on the availability of free deposit protection and recourse in the event of a bank failure was vital in the country.
Government broadened DPC’s mandate and powers as it entered its second phase on the implementation of the public policy roadmap on deposit insurance. Additional functions included participation in resolving failing banks, curatorship, judicial management, liquidations and monitoring banks for deposit insurance purposes and carry out special examinations where necessary.
Zimbabwe is currently the chair of IADI’s Africa Region with an oversight of over 12 markets namely Nigeria, Kenya, Sudan, Tanzania, Uganda, Libya, Republic of Mauritius, South Africa, Malawi, Mozambique, Lesotho and Algeria, among others.
The DPC fund which was established under Section 13 of the Deposit Protection Corporation Act (Chapter 24:29) has the primary objective to compensate depositors in full or in part, for losses incurred in the event of insolvency of a contributory financial institution.
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