THE Deposit Protection Corporation (DPC) has said it compensated depositors from nine failed banking institutions since its establishment in 2003.
The deposit protection scheme automatically covers both individual and corporate depositors at no cost and has become a key mechanism for maintaining public confidence in the country’s formal banking system.
DPC Bulawayo regional office manager Charles Kusaya said since its inception, the fund compensated depositors from Century Discount House, Allied Bank, Rapid Discount House, Sagit Finance House, Genesis Investment Bank, Interfin Banking Corporation, Royal Bank, Trust Bank Corporation and AfrAsia Bank.
“These interventions demonstrate our commitment to safeguarding public funds and maintaining confidence in the financial system,” Kusaya said during a public lecture hosted by Gwanda State University.
“Deposit protection is designed to ensure that depositors do not lose their money when a banking institution fails, in so doing maintaining trust and stability within the financial system.”
The scheme covers savings, fixed, and demand deposits, while instruments such as securities and interbank deposits are excluded.
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Kusaya said DPC operated under a “pay-box plus” mandate, which enables it not only to compensate depositors, but also to monitor financial institutions and promote sound banking practices.
“This broader mandate allows us to promote financial inclusion by creating a level playing field for all banks,” he said.
Coverage limits are structured to protect the majority of depositors, particularly smaller clients, while reinforcing accountability within the financial sector.
“The scheme is structured to safeguard most depositors while ensuring prudent banking practices,” Kusaya said.
He said public awareness was central to advancing financial inclusion.
“When people understand that their deposits are protected, they are more likely to save through formal banking channels.
“Financial literacy and knowledge of protection mechanisms are essential to building trust in the banking system.”
Experts note that initiatives such as the DPC are crucial in fostering trust among first-time and small-scale savers, supporting broader financial inclusion and promoting economic stability.