The Sunday Mail
Enacy Mapakame and Africa Moyo
THE Depositors Protection Corporation, a statutory body that was created by Government to safeguard the interests of depositors of failed banks, might consider reviewing payouts made to depositors of closed financial institutions from the current $500 to $1000 if payments to the Depositors Protection Scheme improve.
The Depositors Protection Scheme is a fund that is pooled from subscriptions made by deposit-taking institutions registered under the Banking Act.
Mr Allen Musadziruma
Banks are required to pay 0,2 percent of their total annual deposits to the scheme and the premiums are paid on a quarterly basis.
Last week, the Corporation indicated that premium payments had improved, especially after the closure of struggling banks by the Reserve Bank of Zimbabwe (RBZ).
By the end of last year, six troubled banks owed $17 million to the scheme.
DPC public relations manager Mr Allen Musadziruma said improved premium payments had helped ease the Corporation’s “headaches.”
“We wish to advise that most banks that were having challenges with premium payments have since been closed or placed under judicial management.
“As highlighted in the Monetary Policy Statement, the RBZ undertook to ensure that the banking sector is safe and sound by 30 June 2015. This has been the case following the closure of some distressed banks and others being placed under judicial management,” said Mr Musadziruma.
As at October 2014, the DPC had a haul of $14 million through the fund.
Currently, the DPC repays a maximum of only $500 per depositor per bank.
“We continue to engage all the relevant stakeholders with a view to review both the cover level and premiums payable for the benefit of depositors and the banking sector through enhanced confidence and stability of the country’s financial system.
“Once discussions have been concluded, we will advise all stakeholders,” added Mr Musadziruma.
The DPC requires its members to display communication in banking halls, ATMs and tellers’ desk in order to give confidence to the banking public.
Since its establishment in 2003, the DPC has compensated depositors from Century Discount House, Rapid Discount House, Sagit Finance House, Genesis Investment Bank, Royal Bank and Trust Bank Corporation.
Payments to AfrAsia, Allied Bank, Interfin Bank, Genesis Investment Bank, Royal Bank and Trust Bank depositors are still ongoing.
Prior to the DPC’s formation, depositors of financial institutions that closed were not compensated.
In essence, the DPC aims to protect depositors, contribute to the stability and public confidence in the financial system and participate in problem-bank resolution.
Where necessary, it is required to monitor and assess risk of members and carry out special examinations, curatorship and liquidations.
Meanwhile, a second meeting of creditors for Afrasia Bank Zimbabwe Limited, which is in liquidation, will be held in Harare and Bulawayo on November 18, 2015 and November 19, 2015, respectively.
