THE Deposit Protection Corporation (DPC) has revealed that depositors with up to US$1 000 can be covered by the institution, in the event of bank failure as it seeks to lure the over US$2 billion estimated to be circulating outside the banking system.
The DPC is an independent statutory body, established in July 2003, by the government in terms of the DPC Act (Chapter 24:29) to administer the Deposit Protection Scheme in Zimbabwe.
DPC protects eligible deposits by providing free compensation in the event of a bank failure.
Money to cover these deposits come from premiums paid by all deposit-taking institutions, interest earned on its investments, borrowings made for purposes of the Deposit Protection Fund, government grants or advances and funds advanced by the central bank.
Speaking at the launch of DPC’s new head office in Borrowdale, Harare, last Friday, DPC chairperson Agmos Moyo said the organisation “will be ready to pay a mass investment, to pay the precise sum assured, without any digital fees and adhering to international standards, which is to say based upon the occurrence of the event”
According to the Reserve Bank of Zimbabwe (RBZ), over US$2 billion is estimated to be circulating outside banks amid mistrust by the public in local financial institutions, the central bank and Treasury.
“So, there is no need for you to keep your United States dollars under your pillow, or in the usual safe deposit. Just bring it into the mainstream, because it’s also protected,” Moyo said.
“So, every citizen with US$1 000 is fully covered by DPC, or its equivalent, in ZiG. To achieve that, we undertake an aggressive investment drive, which is now beginning to bear fruit.”
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The opening of DPC’s new headquarters also coincided with institution receiving its ISO 9001:2015 quality management certification.
Moyo, RBZ director Bank Supervision,. said an initiative to modernise its DPC’s governance structures in collaboration with the Standards Association of Zimbabwe to enhance corporate governance practices.
Philip Madamombe, RBZ’s director Bank Supervision, said the establishment of DPC was a significant step towards safeguarding depositors’ interests and enhancing public confidence in the banking system.
“This protection is crucial as it assures citizens that their hard-earned savings are secure,” Madamombe said.
He said DPC needed to heed changes in the operating landscape to proactively adjust and adapt.
Finance, Economic Development and Investment Promotion minister Mthuli Ncube congratulated DPC on attaining ISO 9001-2015 certification and reaffirmed the corporation’s commitment to ensuring a safe environment for depositors.
“This will further serve to strengthen and build confidence in the financial services industry, as it is directly linked to efficient execution of the corporation’s mandate,” he said.
“The benefits of this certification to DPC and by extension to the economy are vast, and these include but are not limited to operational cost savings, customer satisfaction, independent auditing and review, as well as systems integration.”
He encouraged the DPC board and management to guard this certification jealously and look into more opportunities of continuous improvement.
“The Deposit Protection Corporation serves as a vital safety net for depositors, ensuring that their hard-earned savings are protected in the event of bank failure,” Ncube said.
