HARARE – The Deposit Protection Corporation (DPC) has increased the deposit protection cover to a maximum of ZWL1,000,000, up from ZWL120,000 in an effort to cushion depositors from the prevailing macroeconomic challenges.
DPC is mandated to control the deposit protection fund whose objective is to compensate depositors in part or full for losses incurred in the event of insolvency by contributing institutions.
Some of the contributing institutions include commercial and merchant banks, building societies, finance houses, discount houses and deposit-taking microfinance institutions.
DPC acting chief executive Gift Chirozva said the corporation reviews the cover level from time to time as per its standard operating practice.
“Pursuant to provisions of section 41 of the Deposit Protection Corporation Act (Chapter 24:29), all contributory institutions are advised as stated hereunder.
“With immediate effect, the Deposit Protection Cover is increased from ZWL12O,OOO (One Hundred and Twenty Thousand Zimbabwean Dollars) to a maximum of ZWL1,OOO,OOO (One Million Zimbabwean Dollars) per deposit class per contributory banking institution; and from ZWL5,OOO (Five Thousand Zimbabwean Dollars) to a maximum of ZWL1OO,OOO (One Hundred Thousand Zimbabwean Dollars) per deposit class per contributory deposit taking microfinance institution,” he said.
A number of banks namely Genesis, Capital, Interfin, AfrAsia, Tetrad, Royal, Trust and Allied shut down and destroyed public trust in banks.
The DPC later compensated account holders in the failed banks whose money was rendered worthless by inflation in 2008.
