Home » Business » ZIMBABWEANS ON AVERAGE HOLD LESS THAN 1,000 USD IN BANK ACCOUNTS

HARARE, The average Zimbabwean has a balance of less than 1,000 US dollars in their bank account, making it easy for them to be compensated in the event of bank closure or collapse, says the country's Deposit Protection Corporation (DPC).

Established in 2003, the DPC is an independent body whose major role is to compensate depositors in the event of bank failure. All banks are obliged to be members of the corporation while all account holders automatically become beneficiaries once they open a bank account with any bank.

DPC chief executive officer John Chikura said here Wednesday that 93 per cent of depositors held less than 10 per cent of total deposits, while the other 90 per cent belonged to the remaining seven per cent.

Less than 10 per cent of those who remain exposed will have more than 80 to 90 per cent of the value of deposits and the 90 per cent we are talking about will have about 10 per cent of the value, Chikura said at a workshop on the operations of the DPC.

The government last year increased the DPC deposit cover from 500 USD per account to 1,000 USD, a move which allows the institution to cover about 93 per cent of all bank depositors who would be able to get their monies back in the unfortunate event of a bank closure.

Chikura said no bank had been closed since the cover was hiked and all those being compensated at the moment were still getting 500 USD per account. The DPC is stuck with more than 3.9 million USD which have not been collected by account holders of six banks which ceased operations in the past decade.

Chikura said some people, especially those residing outside major towns and cities, who had smaller balances in their accounts, did not see the value in having to travel to the Harare-based DPC to sign claim forms. In order to address this issue, Chikura said the DPC was this month opening a regional office in Bulawayo as well as partnering with Zimpost, which

has branches all over the country, to facilitate claims with the service being provided free of charge.

The existing law states that depositors of failed banks should be paid at least 60 days after closure, but Chikura said the DPC was working to reduce this to the international benchmark of one week. At the moment the DPC is compensating depositors of six closed banks -- Afrasia (formerly Kingdom), Allied (formerly ZABG), Trust, Interfin, Royal and Genesis Investment Bank.

Source: NAM NEWS NETWORK

Subcribe to my feedFollow on TwitterLike On Facebook Pinterest

Calendar

September 2017
MTWTFSS
« Aug  
 123
45678910
11121314151617
18192021222324
252627282930 

Business News

Our Facebook Page