KEY POINTS
- DPC offers $1,000 deposit coverage for added financial security.
- Over $2 billion circulates outside banks due to public mistrust.
- ISO certification boosts public confidence in Zimbabwe’s financial sector.
The Deposit Protection Corporation (DPC) of Zimbabwe has announced that deposits up to $1,000 are now fully covered in the event of bank failure, as part of a strategy to lure more funds into the formal banking sector. This comes as the central bank estimates that over $2 billion is circulating outside financial institutions due to public mistrust.
The DPC, established in 2003 to oversee deposit insurance in Zimbabwe, aims to provide compensation to depositors through premiums paid by banks, government grants, and other sources. DPC Chairperson Agmos Moyo emphasized the importance of this initiative while speaking at the opening of the corporation’s new headquarters in Borrowdale, Harare.
“We want to assure every citizen that deposits of up to $1,000 are secure. There is no need to store your dollars under the pillow when they can be safely protected through DPC,” Moyo said.
Focus on restoring trust in the financial system
Moyo acknowledged that mistrust in the financial system remains a barrier. However, he noted that DPC’s efforts to rebuild public confidence, combined with financial stability measures, are starting to yield results.
DPC’s launch event coincided with the institution receiving ISO 9001:2015 certification, a global standard for quality management. Finance Minister Mthuli Ncube praised the organization for achieving the certification and urged the board to uphold high standards.
“This certification reinforces trust in Zimbabwe’s financial services, showing that DPC is committed to protecting depositors,” Ncube said. “It will also help the economy by encouraging people to re-engage with the formal banking sector.”
According to Newsday Zimbabwe, the Reserve Bank of Zimbabwe (RBZ) added that the improved deposit insurance will safeguard the interests of depositors, ultimately enhancing public confidence. “The success of this initiative depends on adapting to changes in the financial landscape,” said Philip Madamombe, RBZ’s Director of Bank Supervision.
Promoting financial security and governance
Moyo also highlighted the need to modernize governance structures within DPC. The corporation is collaborating with the Standards Association of Zimbabwe to align governance practices with international standards.
The initiative seeks to boost public confidence, which has been undermined by past financial crises. “The new insurance scheme offers a safety net, ensuring deposits are protected,” Madamombe added.
Ncube further emphasized that protecting savings is vital for economic stability. “DPC’s commitment to quality governance and operational excellence not only benefits individual depositors but strengthens the entire financial system,” he stated.
