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Wednesday, May 29, 2024

Legislation to protect bank deposits under review 

Story by Stanley James, Business Editor

Zimbabwe is refining legislation to protect depositors and encourage the culture of savings in the country’s financial sector.                     

Consultations on the Deposit Protection Corporation (DPC) Amendment Bill held in Harare this Friday created an opportunity for legislators to provide input on refining current legislation to ensure there is more protection of depositors.       
With the legislators submitting their proposals to amendments to the law, the entity’s acting chief executive officer, Ms Kiitu Zawanda highlighted the importance of ensuring depositors’ funds are safe in banks.    

“I would like to reveal that we are always reviewing the depositor cover with a view over fostering confidence, I think through the changes in currency the DPC has been responsive to the needs of the depositors.”

Legislators contend that while laws to protect the interests of depositors are of greater significance, focus should be on continuous monitoring of the strength of banks.  

“The wholesome changes to the legislation are vital, I would like to look at the far end that in case of a bank failure, are the banks ready to reimburse the funds so as DPC, are you able to repay the depositors to make sure that there is justice to the people who preside over the DPC fund,” said the chairperson of the Parliamentary Committee on Budget, Finance and Investment Promotion, Honourable Clemence Chiduwa.

The chairperson of the Parliamentary Legal Committee, Honourable Itai Ndudzo said, “It is unfortunate that bank failures have often led to the depositor being negatively affected through loss of savings, it is of greater interest to us that our submissions should be taken into consideration as we focus on increased depositor confidence.”       

“Having motioned the initiative, I hope that the amendments will be done in an urgent manner so that savings increase thereby translating into economic growth,” Murerwa West legislator, Honourable Farai Jere.

The Deposit Protection Corporation is mandated by the government to focus on the growth and sustainability of banks by providing cover for deposits through insurance or levies charged on specific bank deposit transactions.         

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