$3,2 million paid out to depositors

by Sunday News Online | Sunday, Mar 19, 2017 | 600 views

Roberta Katunga, Senior Business Reporter
THE Depositors’ Protection Corporation has to date, disbursed $3,2 million to 11 579 depositors who constitute half of the total insured depositors who lost their savings when six Zimbabwean banks collapsed.

Between 2012 and 2015 several banks fell by the wayside in a wave of closures blamed on delinquency and general tepid growth.

The six banks included Royal Bank, AfrAsia Kingdom Bank, Allied Bank, Tetrad Investment Bank and Interfin Banking Corporation. DPC public relations manager Mr Allen Musadziruma said compensation of deposits via the Depositors’ Protection Fund (DPF) was still ongoing and urged depositors who have not already done so to submit duly completed forms, as funds are readily available.

“Regarding the Deposit Protection Fund, to date, a total of $3,2 million being 49,8 percent of the total insured deposits in the six failed contributory institutions has been paid to 11 579 depositors out of the Deposit Protection Fund (DPF). Insured deposits represent the guaranteed amount, payable up to a maximum of $500 that depositors will receive once they have submitted a duly completed claim form. Clients of the closed banks with balances equal to or below $500 will be reimbursed in full the amount that was in their account at the time of bank closure provided they submit a duly completed claim form,” he said.

Last year with effect from 1 June the deposit protection cover limit was increased from $500 to $1 000 per depositor per member bank in line with provisions of section 41(1) of the Deposit Protection Corporation Act (Chapter 24:29). “In the event of any new bank failures (effective 1 June 2016), every client with a deposit balance equal to or below $1 000 is guaranteed to receive full compensation of the amount in the bank account at the time of bank closure provided one submits a duly completed claim form. Any outstanding deposit balance above the cover limit of $1 000 is payable through the liquidation process on a pro-rata basis,” said Mr Musadziruma.

The new cover limit of $1 000 per depositor per member bank will protect over 93 percent of depositors by number of accounts in full-in line with the Corporation’s Public-Policy Objective of ensuring at least 90 percent of depositors are covered in full.

Since the spate of bank failures the Reserve Bank of Zimbabwe (RBZ) has maintained strong monitoring of financial institutions to guarantee depositors’ funds. In his monetary policy statement last month RBZ Governor Dr John Mangudya said the country’s banks were stable, with core capital at $1,15 billion during the quarter ended 31 December 2016. As at the same time, all operating banking institutions were in compliance with the prescribed minimum capital requirements.

 

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