DPC to compensate depositors of failed banks within seven days
CLOUDINE MATOLA
The Deposit Protection Corporation (DPC) says it is now able to compensate depositors within seven days of closure of a failed bank, which is in line with international standards.
In the past, it took longer for DPC , which can also serve as a liquidator for failed banks, to compensate depositors of over 10 banks in Zimbabwe.
The latest development was confirmed by DPC board chairperson Agmos Moyo, who spoke at the launch of the institution’s new office in Borrowdale suburb, in the capital Harare.
“…..in the unfortunate event of any bank failure, we at DPC will be ready to pay the prescribed sum assured without any difficulties and adhering to international standards which is to say seven days upon the occurrence of the event.
“We are confident that the fund that we built we are able to meet this obligation without any difficulty,” Moyo said.
According to Moyo, DPC has set up two funds, the ZWG fund and the US dollar fund.
“In line with our vision we have therefore established two funds to mirror the current multi-currency regime where the USD fund a ZWG fund so there’s no need for you to keep your USD dollars under your pillows or in the usual safe deposit just bring it into the main banking stream because it’s also protected,” he said.
Moyo also revealed that depositors with up to US$1000 can be covered by the institution in the unfortunate event of a bank failure.
“Currently your assured sum stands at US$1000, so every citizen with US$1000 is fully covered by the DPC or its equivalent in ZWG. So to achieve that, we had to undertake an aggressive investment drive, which is now beginning to bear fruit,” he said.
Moyo added:”In this respect, over the past five or so years, we have strengthened the balance sheet of DPC by acquiring over 10 commercial properties located in Harare, Bulawayo, Norton and Chinhoyi. The acquisition of this current property being the head office is therefore in line with our goal of having a credible and resilient deposit protection fund.
“Our old head office was rezoned by the local authorities.
We therefore had to relinquish our old head office so that we could rent it out and generate income.”
Speaking at the same event, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, said the institution’s new office demonstrates government commitment to economic growth, fostering a secure financial environment that attracts investors.
“Today (Friday)’s opening is not merely about bricks and mortar, it reflects our unwavering commitment towards economic development and investment promotion. A robust financial system is fundamental for attracting both domestic and foreign investment. By ensuring that the DPC’s funds are secure, we create an environment conducive to growth, innovation, and prosperity,” Professor Ncube said.
He added: “The DPC’s new corporate office is symbolized more than just a physical space, as it represents an investment in infrastructure that will enhance the operational efficiency of the corporation. The modern facilities and advanced technological capabilities will empower the team to better serve the public and respond swiftly to any challenges that may arise within our financial landscape.”
