Deposit Protection Corporation Zimbabwe | Protecting Your Deposits.

DEPOSIT PROTECTION CORPORATION

Protecting Your Deposits

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2015:

 

21-Dec 2015 >>

08-Dec 2015 >>

04-Dec 2015 >>

26-Nov 2015 >>

24-Nov 2015 >>

03-Nov 2015 >>

29-Oct 2015  >>

28-Oct 2015  >>

28-Oct 2015  >>

13-Oct 2015  >>

06-Oct 2015  >>

28-Sep 2015  >>

22-Sep 2015  >>

13-Sep 2015  >>

08-Sep 2015  >>

31-Aug 2015  >>

27-Aug 2015  >>

26-Aug 2015  >>

21-Aug 2015  >>

10-Aug 2015  >>

06-Aug 2015  >>

06-Aug 2015  >>

04-Aug 2015  >>

27-Jul 2015  >>

13-Jul 2015  >>

13-Jul 2015  >>

08-Jul 2015  >>

30-Jun 2015  >>

16-Jun 2015  >>

10-Jun 2015  >>

02-Jun 2015  >>

02-Jun 2015  >>

02-Jun 2015  >>

19-May 2015 >>

11-May 2015  >>

04-May 2015 >>

04-May 2015 >>

21-Apr 2015  >>

20-Apr 2015  >>

24-Mar 2015  >>

18-Mar 2015  >>

10-Mar 2015  >>

09-Mar 2015  >>

26-Feb 2015  >>

24-Feb 2015  >>

11-Feb 2015  >>

11-Feb 2015  >>

10-Feb 2015  >>

06-Feb 2015  >>

27-Jan 2015  >>

25-Jan 2015  >>

25-Jan 2015  >>

21-Jan 2015  >>

16-Jan 2015  >>

14-Jan 2015  >>

09-Jan 2015  >>

09-Jan 2015  >>

01-Jan 2015  >>

 

Headlines:

 

DPC CEO receives the Megafest Top 20 Outstanding Man in Business Award for 2015

Corporate Social Responsibility - DPC takes part in Environmental Walkathon

Public Notice - Demonetisation of the Zimbabwe Dollar for Banks Under Liquidation

2016 National Budget

Press article - Key attributes of effective resolution regimes (Part II)

Press Release - DPC wins international award

Upcoming - Afrasia Second Creditors Meeting

DPC wins Gold Medal at the SMEs International Expo

Press article - Key Attributes of Effective Resolution Regimes

Press article: Moral Hazard in Deposit Protection

DPC exhibited at the Manicaland Agricultural Show

Interfin Bank Second Creditors Meeting

Liquidation Process Simplified

Tetrad Second Creditors Meeting

Press article: Deposit Protection Systems in Africa: Issues & Challenges

DPC Exhibited at the Harare Agricultural Show

Characteristics of an effective deposit protection scheme (Part II)

DPC conducts workshop for banks and journalists (Midlands Region)

DPC exhibited at the Hwange Agricultural Show

2015 Monetary Policy Statement (Download)

DPC conducts workshop for bankers and journalists - Matabeleland Region

Characteristics of an effective deposit protection scheme (Part I)

2015 Mid-Term Fiscal Policy Review (Download)

DPC conducts workshop for bankers and journalists - Manicaland Region

AfrAsia Bank First Creditors Meeting (31-July-2015)

Press highlights - Effective bank resolution

DPC conducts awareness workshop for banks and media practitioners (Mashonaland Region)

Press Article (Highlights): Recent trends & developments in deposit protection

Press Article (Highlights): Role of deposit protection in promoting financial inclusion (continued...)

DPC Public Notice:  Interfin Bank First Creditor's Meeting

DPC Public Notice: Allied Bank First Creditor's Meeting on 24 June 2015

Press Article - Role of deposit protection in promoting financial inclusion

Press mention: Depositors get $500 following bank’s closure

Press Article - Benefits of deposit protection to the financial sector

DPC exhibits at the Zimbabwe Association of Pension Funds (ZAPF) Convention in Victoria Falls

Press Article (Highlights): Benefits of deposit protection to depositors

DPC exhibits at the Zimbabwe International Trade Fair (ZITF) 2015 in Bulawayo

Press Article (Highlights): Role of deposit insurance in Zimbabwe's Financial sector

DPC delivers lecture to NUST students

Press Article (Highlights): Membership to DPC

Public Notice: Royal Bank Second Creditors Meeting

Press Article (Highlights): Reimbursement Process

Public Notice: Payment of Interfin Bank depositors

Public Notice: Payment of Allied Bank depositors

Press Article (Highlights): Claims Procedure

RBZ Monetary Policy Statement

Deposit Protection Corporation moves on Royal Bank

Introduction to Concept of Deposit Insurance System

Depositors fund not bankrupt

DPC to meet over Royal Bank assets auctioning

RBZ picks Allied Bank provisional liquidator

DPC CEO John Chikura appointed to the IODZ Council

Role of Deposit Protection Corporation of Zimbabwe

DPC to pay US$1,3m to Allied depositors

DPC pays out $477 000 to bank depositors

RBZ Public Notice - Cancellation of Licence (Allied Bank)

RBZ cancels Allied Bank licence.

RBZ applies for Interfin liquidation.

2014

 

08-Dec          >>

19-Nov          >>

13-Nov          >>

12-Nov          >>

06-Nov          >>

30-Oct           >>

22-25 Oct      >>

13-Oct           >>

07-Oct           >>

24-27 Sep     >>

20-30 Sep     >>

04-Jun           >>

22-26 Apr      >>

18-Mar          >>

18-Feb          >>

16-Jan          >>

 

2013

6-Dec            >>

4-Dec            >>

23-Apr          >>

11-Mar          >>

28-Jul           >>

13-Jun          >>

  • DPC conducts awareness workshop for banks and media practitioners (Mashonaland Region)

    [08-Jul-15]

    The Deposit Protection Corporation (DPC) hosted a Breakfast workshop in Harare for local banks on the 8th of July 2015 at Cresta Sango Conference Centre. The workshop was meant to educate member banks and members of the media on the operations of the Deposit Protection Scheme.

     

    In addition to all member banks invited, other participants included journalists from various media houses such as The Herald, Daily News, Newsday, ZBC, FINX, ZiFM, The Source, Business Connect and New Ziana, .

     

    DPC CEO Mr John Chikura delivered a presentation on the Operations of the Deposit Protection System so as to give the participants an overview and appreciation of what DPC and Deposit Protection Scheme entails.

     

    Publicity of the Deposit Protection Scheme as required by law (DPC Act Chapter 24:29 and Statutory Instrument 156 of 2013) will go a long way in increasing public awareness of the existence of DPC and deposit protection scheme. If the public is informed on the availability of free deposit protection and recourse in the event of a bank failure, this will greatly assist in enhancing their confidence in the financial system and will greatly contribute to financial stability for the benefit of the financial system and economy at large.

     

    To download the presentation, please click here.

     

     

    WORKSHOP PICTURES

  • Press Article (Highlights): Recent trends & developments in deposit protection >>

    [30-Jun-15]

    Press Article (Highlights): Recent trends & developments in deposit protection                          (Download)

  • Press Article - Role of deposit protection in promoting financial inclusion (continued...) >>

    [16-Jun-15]

    Press Article - Role of deposit protection in promoting financial inclusion                          (Download)

  • DPC Public Notice:  Interfin Bank First Creditor's Meeting >>

    [10-Jun-15]

    DPC Public Notice - Interfin Bank First Creditors Meeting                          (Download)

  • DPC Public Notice: Allied Bank First Creditor's Meeting on 24 June 2015 >>

    [02-Jun-15]

    DPC Public Notice - Allied Bank First Creditors Meeting                          (Download)

  • Press Article - Role of deposit protection in promoting financial inclusion >>

    [02-Jun-15]

    Press Article - Role of deposit protection in promoting financial inclusion                          (Download)

  • Press mention: Depositors get $500 following bank’s closure >>

    [02-Jun-15]

  • Press Article - Benefits of deposit protection to the financial sector >>

    [19-May-15]

    Press Article - Benefits of deposit protection to the financial sector                           (Download)

  • DPC exhibits at the Zimbabwe Association of Pension Funds (ZAPF) Convention in Victoria Falls >>

    [11-May-15]

    DPC successfully exhibited at the 40th Annual Convention of the Zimbabwe Association of Pension Funds (ZAPF) that was held in Victoria Falls from 6-9 May 2015 which was held under the theme: Empowering Stakeholders through Communication.

     

    The Convention was well attended by over 300 delegates ranging from pension fund administrators, financial sector regulators, banks, insurance companies and other players from the private and public sector. The guest of honour was the Minister of Finance & Economic Development, Honourable Patrick Chinamasa.

     

    The Convention offered an excellent awareness opportunity for DPC to inform the delegates from key industry sectors on the deposit protection scheme and raise brand awareness through display of banners and distribution of informational materials.

    ZAPF Exhibition Pictures...

    Deposit Protection Corporation exhibition stand at the ZAPF 2015
    Deposit Protection Corporation exhibition stand at the ZAPF 2015
    Deposit Protection Corporation banner at the ZAPF 2015
    exhibition stands at the ZAPF 2015
    Deposit Protection Corporation exhibition stand at the ZAPF 2015
    Deposit Protection Corporation banners at the ZAPF 2015
  • Press Article (Highlights): Benefits of deposit protection to depositors >>

    [04-May-15]

    Press Article (Highlights): Benefits of deposit protection to depositors                         (Download)

  • DPC exhibits at the Zimbabwe International Trade Fair (ZITF) 2015 in Bulawayo >>

    [04-May-15]

    The 56th edition of the Zimbabwe International Trade Fair (ZITF) was held in Bulawayo from the 28th of April to the 2nd of May 2015 under the theme: Stimulating Trade - Seizing Opportunities To Accelerate Growth. The annual trade showcase offers DPC an excellent opportunity to interact with clients and educate them on the deposit protection scheme as part of efforts to raise awareness of the scheme and taking deposit protection to the people.

     

    DPC enjoyed extensive media coverage in both print and radio informing depositors on the deposit protection scheme and offering depositors of closed banks such as AfrAsia, Allied, Interfin, Trust, Royal and Genesis the opportunity to submit their claim forms to enable DPC to process compensation free of charge.

    ZITF Exhibition Pictures...

  • Press Article (Highlights): Role of deposit insurance in Zimbabwe's Financial sector >>

    [21-Apr-15]

    Press Article (Highlights): Role of deposit insurance in Zimbabwe's Financial sector                           (Download)

  • DPC delivers lecture to NUST students >>

    [20-Apr-15]

    Deposit Protection Corporation successfully delivered a lecture to over 120 National University of Science & Technology (NUST) students mainly from the Department of Finance & Banking. The presentation which was delivered by DPC CEO, Mr John Chikura, was held at NUST Campus (Delta Lecture Theatre) on Tuesday, 14th of April 2015. No fee was charged to students for attending the lecture.

     

    This was the beginning of the Corporation’s drive to raise awareness of the the Deposit Protection Scheme among students with similar presentations slated for other tertiary institutions such as Africa University, Midlands State University (MSU), Harare Institure of Technology and the University of Zimbabwe (UZ) among others.

     

    An updated version of the presentation titled "Overview of the Deposit Protection Scheme" can be downloaded here.

    NUST WORKSHOP PICTURES

  • Press Article (Highlights): Membership to DPC >>

    [24-Mar-15]

    Press Article (Highlights): Membership to DPC                                                   (Download)

  • Public Notice: Royal Bank Second Creditors Meeting >>

    [18-Mar-15]

    DPC Public Notice - Royal Bank Second Creditors Meeting                             (Download)

  • Press Article (Highlights): Reimbursement Process >>

    [10-Mar-15]

    Press Article (Highlights): Reimbursement Process                                                        (Download)

  • Public Notice: Payment of Interfin Bank depositors >>

    [09-Mar-15]

    Public Notice: Payment of Interfin Bank depositors                                                   (Download)

  • Public Notice: Payment of Allied Bank depositors >>

    [26-Feb-15]

    Public Notice: Payment of Allied Bank depositors -             (Download)

  • Press Article (Highlights): Claims Procedure >>

    [24-Feb-15]

    Press Article (Highlights): Claims Procedure -                 (Download)

  • RBZ Monetary Policy Statement - 2015 >>

    [11 Feb-2015]

     

    RBZ Monetary Policy Statement - 2015 : Download

  • Deposit Protection Corporation moves on Royal Bank >>

    [11 Feb-2015]

     

    THE Deposit Protection Corporation (DPC) has started preparing to set up the first liquidation and distribution account of Royal Bank as part of efforts to refund depositors whose funds are trapped in the financial institution.

     

    The bank was placed under provisional liquidation in February last year when it surrendered its operating licence to the Reserve Bank after it failed to secure new investment.

     

    Royal Bank liquidator John Chikura, who is also the chief executive of the DPC, said the first liquidation and distribution account would determine how much money depositors would get. Royal Bank property was auctioned last month as the DPC moved to recover creditors’ funds.

     

    “We can confirm the auction of immovable properties went ahead as variously advertised in the Press. A detailed account of the auction results will be provided in the liquidator’s second report which will be presented in the second creditors’ meeting,” Chikura said. “We can’t tell how much was realised from the auction, but all we can say is that there was a high turn-up and everything was sold.”

     

    He said the second creditors’ meeting was set to be held mid-March 2015 and a detailed account of the auction results would be provided in the liquidator’s second report.

    “As you might be aware, Royal Bank is now in final liquidation and the first creditors’ meeting was held on 28 January 2015 whereat the liquidator’s first interim report was presented and circulated to all creditors and the Press. As per usual practice, the main purpose of the first creditors’ meeting was to allow all creditors to prove their claims before the Master of High Court,” the DPC boss said.

     

    “The liquidator expects to hold a second creditors’ meeting for Royal Bank by mid-March 2015 at which a detailed report highlighting, among other issues, the gross receipts realised on disposal of movable and immovable assets, liquidation expenses and the liquidation dividend to be paid to unsecured creditors will be presented and circulated to all creditors.”

     

    Royal Bank was established in 1997 and placed under curatorship in 2004 due to liquidity challenges, poor lending practices and corporate governance deficiencies.

     

    Its assets were later transferred to Zimbabwe Allied Banking Group in 2005. After a myriad of litigations, the parties eventually agreed on an out-of-court settlement and the bank was re-registered as a commercial bank in 2010.

     

    Source: https://www.newsday.co.zw/2015/02/11/deposit-protection-corporation-moves-royal-bank/

     

     

  • Introduction to Concept of Deposit Insurance System  >>

    [10 Feb-2015]

     

    Introduction to Concept of Deposit Insurance System   - Download

    (Herald Fortnightly Articles)

  • Depositors fund not bankrupt >>

    [06 Feb-2015]

     

    THE Deposit Protection Corporation (DPC) says it is able to refund depositors of liquidated banks, allaying fears that the Deposit Protection Fund (DPF) is bankrupt.

     

    With the latest crisis in the banking sector, there are fears the fund’s coffers are empty and the institution does not have the financial wherewithal to protect the public in the case of bank closures.

     

    Several banks have been listed in critical condition in the past two months, culminating with the closure last month of Allied Bank. Tetrad Bank has also been placed under liquidation as the crisis continues in the country’s financial sector. DPF’s primary function is to compensate depositors in full or in part for losses incurred in the event of insolvency of a contributory institution.

     

    In a volatile banking environment which has seen many financial institutions facing liquidation, there were rising fears that the DPC could fail to deliver its mandate.

     

    The list of banks in distress continues to balloon as in 2015 alone, Allied Bank has joined the liquidation statistic while Tetrad Bank has been placed under judicial management.

     

    However, in a response to Southern Eye Business this week, DPC chief executive officer John Chikura assured the public that the DPC has capacity to pay off all depositors of banks which have been closed to date up to the maximum insured limit of $500 per depositor per account. “As per our mandate, we are always prepared and ready to fulfil our statutory mandate as we have robust systems in place that are backed by years of experience,” he added.

     

    Concerns have, however, been raised on the suitability of the fund to bulk depositors like companies and schools which have not been considered individually and would still hold hefty balances after a $500 reimbursement.

     

    Chikura said any balance above the insurable amount would be paid through the liquidation process upon the realisation of assets. “The disposal of the bank’s assets will only take place after the granting of a final liquidation order by the High Court,” he said.

     

    Recently, the DPC held meetings of creditors and members at the Master of High Court to get proof of claims ahead of the auctioning of Royal Bank’s assets after it surrendered its operating licence in July 2012.

     

    Source: http://www.southerneye.co.zw/2015/02/06/depositors-fund-bankrupt/

     

     

  • DPC to meet over Royal Bank assets auctioning  >>

    [27 Jan-2015]

     

    THE Deposit Protection Corporation (DPC) will tomorrow hold its first meeting of creditors and members at the Master of High Court to get proof of claims ahead of the auctioning of the defunct Royal Bank’s assets.

     

    Royal Bank’s 34 fixed properties dotted around the country will go under the hammer on Friday.

     

    The DPC said the first meeting will be held in Harare and creditors are supposed to submit claims and the liquidator’s interim report will be presented by the liquidator John Chikura.

     

    The properties are located all over the country and the auctioning of the properties will necessitate the DPC to pay creditors who have balances that are above $500.

     

    Royal Bank surrendered its operating licence in July 2012 as it was facing capital constraints.

     

    The bank had a cumulative loss of $5,98 million as at June 30 2012 which was due to high operating costs and had been using depositor’s funds to cover operating expenses.

     

    The central bank said Royal had outstanding debts of $2,27 million and some creditors and depositors had instituted legal proceedings against the bank for failing to meet payment obligations. Royal Bank at some point gave depositors $50 as withdrawal.

     

    It is estimated that the bank owns land and buildings valued at $4,8 million.

     

    Royal Bank had plans to convert into a microfinance institution. According to the central bank, Royal Bank was undercapitalised with a core capital of only $1,85 million as at June 30 2012 which was below the regulatory capital requirements of $12,5 million then for commercial banks.

     

    A Kenyan investor, Commercial Bank of Africa, had shown interest in Royal and wanted to acquire 62% shareholding. The deal did not come to fruition amid claims by Royal founders that the central bank had stymied the deal by closing the bank when an investor was about to pour in money.

     

    Source: https://www.newsday.co.zw/2015/01/27/dpc-meet-royal-bank-assets-auctioning/

     

  • RBZ picks Allied Bank provisional liquidator >>

    [25 Jan-2015]

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    THE Reserve Bank of Zimbabwe has applied to the High Court to have the Deposit Protection Corporation (DPC) appointed as the provisional liquidator of Allied Bank.

     

    This follows the cancellation of Allied Bank’s operating licence by the RBZ on January 8 after it became clear the institution was grossly undercapitalised and faced chronic liquidity challenges.

     

    Before its closure, Allied had widened its losses to US$4,2 million in the six months to June 2014 from US$2,4 million recorded in the same period in 2013 due to a decline in operating income and a spike in interest expenses.

     

    DPC public relations manager Mr Allen Musadziruma told The Sunday Mail Business last week that the “appointment has not yet been confirmed by the courts”.

     

    Mr Musadziruma said if appointed the provisional liquidator, the DPC would advise insured depositors through the media to apply for compensation.

     

    “Once a duly completed and certified claim form has been submitted together with supporting documents (copy of national ID, valid passport or valid driver’s licence), the corporation will verify the balances in the depositors’ accounts.

     

    “Currently, a depositor is reimbursed within five working days from date of submission of the completed claim form. Payments to Allied Bank clients will commence soon and public notices will be issued in due course,” said Mr Musadziruma.

     

     

    The DPC has the capacity to pay off Allied Bank’s depositors up to the maximum insured limit of US$500 per depositor per account, and any balances above US$500 will be recompensed through the liquidation process upon realisation of assets.

     

    Disposal of the bank’s assets will only take place after granting of a final liquidation order by the High Court.

     

    The DPC is already undertaking the same process for Royal Bank creditors, with whom it is meeting before the Master of the High Court on Wednesday so that they submit claims and get the liquidator’s report.

     

    About US$1,3 million will be paid to Allied Bank’s depositors as deposit insurance payments. Payments to depositors will be done through mobile phone transfers, cash and bank transfers.

     

    Allied Bank was a member of the Deposit Protection Scheme as membership is mandatory for any banking institution registered in terms of the Banking Act (Chapter 24:20) and the Building Societies Act (Chapter 24:02).

     

    Allied Bank is the sixth bank to have its licence cancelled by monetary authorities since adoption of the multi-currency regime in 2009. The others are Royal, Genesis Investment, Trust, Interfin and Capital banks.

     

    Two other banks, AfrAsia Zimbabwe and Metbank Limited, are exploring recapitalisation plans and scouting for investors to rescue their operations.

     

    Market watchers believe local financial institutions are failing because of lax corporate governance which has led to increased and unsustainable insider loans.

     

    Non-performing loans now stand at 20 percent, up from 18 percent in June 2014, making it difficult for the weak institutions to attract fresh capital to shore up their coffers to sustainable levels.

     

    The DPC administers the Deposit Protection Fund established under Section 13 of the Deposit Protection Corporation Act (Chapter 24:29).

     

    DPF’s main mandate is to compensate depositors in full or in part for losses incurred in the event of insolvency of a contributory institution.

     

    Home-seekers’ US$1,8m trapped in bank

    AN estimated US$1,8 million belonging to low-income earners who had invested in a housing scheme at the behest of Zimbabwe Amalgamated Housing Association (Zaha) is trapped in Allied Bank following the closure of the lender on January 8 this year.

     

    Zaha had entered into an alliance with Allied Bank through which home-seekers opened savings accounts with the lender.

     

     

    Individuals only became eligible for housing schemes in Budiriro, Harare and Norton once their deposits reached either US$1 500 or US$3 000 depending on the offer they had taken up.

     

    The scheme attracted scores of low-income earners, including vendors.

     

    But chances that they will be able to recover their money from the bank are slim.

     

    The Deposit Protection Corporation (DPC), which is mandated to compensate them, might not be able to pay the full amounts owed.

     

    Zaha director-general Mr Killer Zivhu said they had expected Allied Bank to close and this did not mean the end of the association.

     

    “Our future as Zaha did not depend on Allied Bank. Zaha is not worth US$1,5 million and we cannot close because of that.

     

    “We told our clients to move banks because we had expected that Allied Bank would close as early as last year. It is not a secret that the guys were struggling and many people thought they would get an investor, but that failed.

     

    “However, those that had opened personal accounts and had not qualified for any of our schemes, their money is still in their accounts and we are not answerable.

     

    “They were not yet our members; all our members were told to move accounts and to stop depositing any more money into Allied Bank.”

     

    Mr Zivhu, who had earlier promised to give details about the number of prospective members not yet eligible for their schemes but had opened accounts with the bank, was no longer answering his mobile phone by the time of writing.

     

    Government has allocated co-operatives vast tracts of land to develop and ease accommodation problems but prospective home-seekers continue to be duped.

     

    Over 2 600 housing co-operatives are registered with 1 200 being allocated housing stands. Harare alone has more than 500 000 people on its housing waiting list, while the national housing backlog stands at 1,25 million.

     

    Source: http://www.sundaymail.co.zw/?p=23694

     

    DPC provisional liquidator of Allied Bank
  • DPC CEO John Chikura appointed to the IODZ Council >>

    [25 Jan-2015]

     

    John Chikura of Deposit Protection Corporation Zimbabwe appointed IADI Treasure
  • Role of Deposit Protection Corporation of Zimbabwe >>

    [21 Jan-2015]

     

    Deposit Protection Corporation Zimbabwe building

    Role of Deposit Protection Corporation of Zimbabwe

     

    In an effort to protect depositors in the banking system in Zimbabwe, the Government set up the Deposit Protection Corporation (formerly the Deposit Protection Board) to provide a depositors insurance scheme in times of bank failure.

     

    The Deposit Protection Corporation is thus a significant player in the financial sector as it provides a safety- net for the savings, banking and payments systems. It is meant to protect depositors against loss of part or all of their deposits in case of a bank failure, by paying out a certain minimum amount to depositors, thereby ensuring depositors remain confident enough to continue keeping their savings within the formal banking and payment systems.

     

    What is Deposit Insurance and how does it protect bank depositors?

     

    Deposit Insurance schemes are typically created to prevent contagious bank runs, to provide a formal national mechanism for handling failing banks, and to protect small depositors from losses when banks fail. Because banks are highly leveraged institutions, depositors have a strong incentive to show up at the bank first, to withdraw their funds in case they doubt the financial health of a particular bank. Those at the end of the line may get nothing. In short, deposit protection is designed to prevent depositors from overreacting to bad news about banks.

     

    Deposit Insurance as a function, is therefore geared towards reimbursing a limited amount of deposits to depositors whose bank has failed.

     

    From the depositors’ point of view, this protects a part of their wealth from bank failures. From a financial stability perspective, this promise prevents depositors from making panic withdrawals from their bank,

    thereby preventing severe economic consequences.

     

    The knowledge that their savings are protected gives depositors confidence in the banking system as a whole. If one bank has a problem, the deposit insurance scheme will reassure depositors in other banks that there is no need to panic.

     

    Who is covered under the current deposit protection framework in Zimbabwe?

     

    At present, all individual depositors in our banking system are insured to a maximum of US$500 per account though the Deposit Protection Corporation.

     

    This means that even if a bank goes out of business, the DPC will pay individual deposit account holders a guaranteed maximum of US$500. This may be done all at once or in faces depending on factors determined at the time. Savers are thus guaranteed of US$ 500 upon the unforeseen collapse of a banking institution, while the remainder would usually be paid out from proceeds realised through the process of liquidation of the bank. This means the depositors will have a lifeline after the collapse of the bank, although this is limited to the cap set by the DPC.

     

    The deposit guarantee scheme thus ensures that depositors are reimbursed part or all of their deposits in the event of a bank failure. A deposit protection scheme can also be defined as an institutional arrangement designed to protect banking deposits in the event of a bank failure.

     

    What are the key characteristics of the Deposit Protection Scheme in Zimbabwe?

    The Zimbabwean deposit protection scheme is characterised by the following:

    • It is explicitly grounded in law i.e. the DPC is an Institution which was established through a legal instrument called the Deposit Protection Corporation Act (Chapter 24:29).

     

    • It is compulsory for every banking institution in Zimbabwe to be a member of the DPC. The public should note that each and every bank is compelled to be a member of the DPC and to adequately and prominently appoint notices and signs it its banking halls to testify to that fact.

     

     

    • Possesses well-crafted procedures for accounting and supervision. There are general guidelines that are publicly available on how the DPC goes about disbursing resources to depositors in case of bank failure

     

    • The deposit insurance scheme is financed from banking institutions subscriptions. Like any other insurance programme, the banks pay subscriptions to the DPC as agreed in any particular year.

     

    • Non Discriminatory in that it treats large, small, private and state-owned banks equally. There is no discrimination on the size of the banks, all depositors are treated equally regardless of the bank they bank with.

     

    • Does not discriminate whether an individual account was a savings or current account. Thus all types of individual accounts are covered. However, corporate accounts are excluded.

     

    • Prompt reimbursement when a bank fails. Payments are made within reasonably short time period once a bank goes under.

     

    How can banks ensure confidence in the banking sector?

     

    It should be understood that banks, at law, have a fiduciary duty. It is the duty of the bank to protect the savings of the citizens and provide reasonable returns in case the savings are placed in appropriate income generating accounts.

     

    A fiduciary must avoid ‘self-dealing’ or ‘conflicts of interests’ in which the potential benefit to the fiduciary is in conflict with what is best for the person who trusts them.

     

    For example, a banker must consider the best investment for the client, and not buy or sell investments on the basis of what brings the highest commission for the banker.

     

    Based on the fiduciary role of banks, stakeholders thus place outmost faith in putting their savings in the banks.

     

    Sanderson Abel is an Economist. He writes in his capacity as Senior Economist for the Bankers Association of Zimbabwe. For your valuable feedback and comments related to this article, he can be contacted on abel@baz.org.zw or on numbers 04-744686 and 0772463008

     

    Source: http://www.herald.co.zw/role-of-deposit-protection-corporation-of-zimbabwe/

     

     

  • DPC to pay US$1,3m to Allied depositors >>

    [16 Jan-2015]

     

     

     

     

     

     

     

     

     

     

     

     

     

    THE Deposit Protection Corporation (DPC) will immediately pay out US$1,3 million of the US$14,7 million owed to depositors of Allied Bank with the rest to be settled after the liquidation of the bank’s assets, businessdigest has established.

     

    The central bank cancelled the operating licence of Allied Bank, owned by Transport minister Obert Mpofu, last week saying the institution was no longer in a safe condition.

     

    “The Reserve Bank of Zimbabwe (RBZ) has determined that the banking institution is no longer in a safe and sound condition in that the institution is grossly undercapitalised and is facing chronic liquidity challenges,” the Registrar of Banking Institutions said.

     

    The RBZ said the action was in the best interests of the banking institution, its depositors and creditors, and the banking sector in general.

     

    DPC CEO John Chikura said the organisation has the capacity to pay affected depositors up to the maximum assured limit of US$500 with the remainder to be paid out after the liquidation of the bank’s assets.

     

    “DPC expects to pay a total of US$1,3 million to Allied Bank’s depositors as deposit insurance payments,” Chikura said. “DPC has the capacity to pay all depositors of Allied Bank up to the maximum insured limit of US$500 per depositor per account. Deposit balances above the insurable amount of US$500 will be paid through the liquidation process upon realisation of assets.”

     

    Chikura expressed concern over the continued closure of banks, saying this would have an adverse effect on the stability of the banking sector as well as growth of the insurance fund.

     

    “An increase in bank failures negatively affects the stability of the banking sector and the growth of the deposit insurance fund,” Chikura said.

     

    He revealed that the DPC had paid more than half of the depositors of closed Genesis and Royal banks.

     

    “We have made significant progress on the payments to former depositors of both banks and payments are still in progress. For Genesis, we have so far paid 68% of the depositors while for Royal Bank we have paid 57% of the total depositors,” he said.

     

    “The main reason why some of the depositors haven’t been paid is that quite a significant number of depositors have balances below US$5 and hence find it uneconomic to claim their money. We have, however, tried a number of ways to reach out to the affected depositors, including calling the depositors, sending money via mobile money payments, as well as media publications inviting depositors to come and claim their money.”

     

    Source: http://www.theindependent.co.zw/2015/01/16/dpc-pay-us13m-allied-depositors/

     

    DPC to pay $1.3million to Allied Bank depositors
  • DPC pays out $477 000 to bank depositors >>

    [14 Jan-2015]

     

    The Deposit Protection Corporation has so far paid out about $477 000 to depositors of Genesis, Trust and Royal  banks. The DPC said that it continues to make payments although some depositors are reluctant to come forward. “Payments to Genesis, Trust and Royal Bank depositors are still in progress. The response from the depositors  of the above mentioned banks has increased slightly.

     

    “The majority of the clients that have not responded to our calls and adverts are those whose deposit balances are below $5,” the DPC said.

    The figure paid out represents about half the $812 523,14 of total insured deposits held by the DPC.

     

    The bulk of the $476 979, $353 180 was paid out to Royal bank depositors. The figure represents about 74,79 percent of  the bank’s deposits while total insured deposit for the bank are $472 206,69. Trust bank depositors have so far been paid $115 428 which is about 35 percent of the bank’s total deposits while the bank’s total insured deposits amounted to $328 516,45. The least amount of $8 371 was paid to Genesis depositors representing 70,94 percent of the bank’s total deposits while  total insured deposits amounted to $11 800.

     

    In terms of remittances to the DPC by banks, the corporation said it was making follow ups.“Only a few banks facing liquidity challenges have been struggling to remit contributions,” it said. Meanwhile the DPC said it will start paying Allied bank depositors once the provisional order has been granted by the High Court.

     

    The Reserve Bank of Zimbabwe last week cancelled Allied Bank’s operating licence on the basis that the institution was  no longer in a safe and sound condition. This followed a voluntary surrender of the licence by the banking institution.

     

    The Deposit Protection Fund was established under Section 13 of the Deposit Protection Corporation Act [Chapter  24:29]. Its primary objective is to compensate depositors in full or in part, for losses incurred in the event of insolvency of a contributory institution.

     

    Source: http://www.herald.co.zw/dpc-pays-out-477-000-to-bank-depositors/

  • RBZ Public Notice - Cancellation of Licence (Allied Bank) >>

    [9 Jan-2015]

     

    RBZ Public Notice - Cancellation of Licence (Allied Bank)                             (Download)

  • RBZ cancels Allied Bank licence >>

    [9 Jan-2015]

     

    ALLIED Bank has surrendered its licence to the Reserve Bank of Zimbabwe after failing to raise the minimum capital prescribed by the central bank. In a statement, the Reserve Bank of Zimbabwe said it had cancelled Allied Bank Limited’s licence in terms of Section 14 (4) of the Banking Act [Chapter 24:20]. The cancellation followed a voluntary surrender of the licence by the banking institution.

     

    “The Reserve Bank has determined that the banking institution is no longer in a safe and sound condition in that the institution is grossly undercapitalised and is facing chronic liquidity challenges.”

     

    The Reserve Bank will apply for the liquidation of the institution in terms of Section 57(1) (a) of the Banking Act.

     

     

    Allied Bank is among six banks that failed to meet prescribed minimum capital levels by September 30 last year, according to RBZ.

     

    It had core capital of $3,14 million, far below minimum capital level of $25 million.

     

    No comment could be obtained from Allied Bank at the time of going to press yesterday.

     

    Two weeks ago, the central bank announced that it was not extending the curatorship period of another troubled bank, Interfin Bank Limited, and would liquidate it.

     

    The RBZ said the primary purpose of placing the banking institution under curatorship was to protect depositors and preserve assets of the banking institution, with the intention of resuscitating the banking institution and make it a viable concern.

     

    The initiatives taken by the curator to resuscitate Interfin Bank were fruitless. A total of 12 potential investors were considered, but none of the proposals put forward yielded positive results. This resulted in the institution’s condition continuing to deteriorate.

     

    “The Reserve Bank determined that it was no longer feasible to resuscitate the bank as a viable concern as all efforts to recapitalise the banking institution have yielded no positive results and any further extension of curatorship would only further prejudice depositors and creditors,” the central bank said in a statement recently.

     

    Some the distressed banks, which occupy insignificant market shares in terms of loans, deposits and assets include Metropolitan Bank, AfrAsia Bank and Tetrad Investment Banking.

     

    As at September 30, a total 14 out of 20 operating banking institutions were in compliance with the prescribed minimum capital requirements, the central bank said in its quarterly industry report.

     

    It said some non-compliant banks were taking measures to regularise their capital positions and were at different implementation stages.

     

    Recently, AfrAsia said it had engaged local finance group Imara Capital Finance to jointly market a Medium Term Secured Note, which is expected to generate an incremental $15 million.

     

    In a joint update to stakeholders on December 19, AZHL Group chief executive Ms Lynn Mukonoweshuro and AfrAsia Bank Limited CEO Mr James Benoit said several prospective investors had also expressed interest in injecting equity investment into AZHL/ABZL.

     

    Source: http://www.herald.co.zw/rbz-cancels-allied-bank-licence/

  • RBZ applies for Interfin liquidation >>

    [1 Jan-2015]

     

    The Reserve Bank of Zimbabwe applied to the High Court for Interfin Bank to be placed under provisional liquidation after failing to recapitalise over the course of its curatorship.

     

    Interfin was placed under curatorship when high levels of non-performing insider and related party exposures, chronic liquidity and income generation challenges, poor board and senior management oversight, as well as violation of banking laws and regulations were discovered at the bank.

     

    The recuperative curatorship started on 11 June 2012 for an initial period of three months and a corrective order was issued.

     

    The curatorship period was subsequently extended to 31 December 2014 to give the curator and the board enough time to cause the recapitalisation of the bank and address its liquidity and capital deficiencies as per the corrective order.

     

     

    As at November 2014, Interfin’s net asset position stood at a negative $166 million. The bank owes its depositors over $70 million.

     

    The central bank in September 2014 initially recommended that Interfin surrender its licence for cancellation.

     

    In a letter to the curator Peter Bailey, RBZ said surrendering the licence for cancellation would be in the best interest of depositors and creditors.

     

    A board meeting held on October 28, 2014 noted that there were two potential investors keen to capitalise the bank.

     

    As a result, the proposed cancellation of the bank’s licence became subject to Intefin’s failure to conclude these two proposals.

     

    The bank was in discussions with a foreign investor Belle Holdings who had offered to inject $50 million into the business.

     

    However, the deal failed to go through as the investor did not provide proof of funds and a letter of commitment by December 24 to save the bank from liquidation as had been requested by the Reserve Bank leaving the curator no option but to go for liquidation in the best interest of depositors and other creditors.

     

    The order will be for three months starting from the expiry of the curatorship yesterday.

     

    The order was also granted after shareholders failed to raise any funding and all efforts to recover money since the bank was placed under curatorship failed with the bulk of the recoveries going towards the curators fees.

     

    The bank was reported to have collected 1,57 percent of the$107,2 million owed by debtors since it was put under recuperative curatorship.

     

    Efforts to get comment from RBZ Governor Dr John Mangudya proved futile as he was said to be out of the country on a fundraising trip.

     

    (Source: http://www.herald.co.zw/rbz-applies-for-interfin-liquidation/)

     

  • DPC takes part in the 2014 Environmental Walkathon >>

    [2-6 Dec-2014]

     

    Friends of the Environment Walkathon

    Bulawayo to Gwanda (130Kms)

    2-6 December 2014

    Walking for the Environment - A tree today, forests tomorrow.

    Staff members from the Deposit Protection Corporation (DPC) took part for the first time in the 2014 Friends of the Environment Walkathon from Bulawayo to Gwanda, walking a distance of 130 kilometers over a period of 3 days in an effort to raise environmental awareness on the importance of tree planting.

     

    The walkathon  was also part of DPC's corporate social responsibility.

     

    The 2014 walkathon saw 200 walkers from different institutions taking part. In addition to the awareness walk, tree planting was also done at 3 schools along the way. The curtain came down on Friday 5 December with the official opening of the nursery at Ntepe High School in Gwanda which was sponsored by OK Zimbabwe. The nursery will serve as the hub for providing tree seedlings for the greater part of Matabeleland South.

     

    In addition to DPC, some of the corporates  that participated included OK Zimbabwe (main sponsor), Standard Chartered Bank, Nyaradzo, Iveco, StarFM, Road Angels, Forestry Commission, Mimosa and Zimplats among others.

     

    Friends of the Environment (FOTE) is a non-profit organisation of like-minded individuals and corporate entities championing the re-greening of Zimbabwe through tree planting. FOTE works together with the Ministry of Environment and Natural Resources Management, The Forestry Commission and Environmental Management Agency (EMA).

     

    Objectives of FOTE:

    • to plant 500 million trees by 2026.
    • to establish at least 100 nurseries across the country.
    • to raise environmental awareness through annual walkathon campaigns.
    • to plant trees across the country with different communities.
    • to encourage communities to plant and conserve trees.
    • to create employment through nursery projects.
    • to create woodlots from which communities can derive benefits.

     

    Background to the drive:

    • widespread deforestation has turned out to be the chief global ecological tragedy of modern times.
    • forests are depleting much faster than nature can replenish on its own.
    • it is estimated that 330, 000 hectares of trees are destroyed annually in Zimbabwe (1ha = 1,600 trees).
    • At this rate, it is estimated that Zimbabwean forests will be completely wiped out in 52 years (Forestry Commission, 2012).
    • Deforestation is said to be affecting the SADC region, African continent and the whole world.

     

    Importance of trees

    • maintenance of a balanced ecosystem.
    • trees have a multi-functional effect of reducing global warming.
    • trees control weather fluctuations.
    • trees protect the soil, filter water, provide medicinal herbs and beautify landscapes.

     

    For more pictures, please visit our Facebook page.

  • Media Release - DPC CEO John Chikura Appointed Treasurer of International Body of Deposit Insurers (IADI) >>

    [19-Nov-2014]

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Media release

    19 November 2014

     

    DPC CEO, John M. Chikura Appointed IADI Treasurer

     

    At the recently held 13th Annual Conference and General Meeting of the International Association of Deposit Insurers (IADI) that was held on the 23rd of October 2014, the Chief Executive Officer of the Deposit Protection Corporation (DPC) Mr John Mafungei Chikura was elected as the new Treasurer of the international body of deposit insurers. By virtue of the appointment, Mr Chikura will also sit on the Executive Council of IADI. The prestigious appointment has raised the profile of Zimbabwe’s brand on the international scene and it further attests to the country’s sterling contribution and active participation in global financial issues.

     

    The International Association of Deposit Insurers was formed in May 2002 to enhance the effectiveness of deposit insurance systems by promoting guidance and international cooperation. Members of IADI conduct research and produce guidance for the benefit of those jurisdictions seeking to establish or improve a deposit insurance system. Members also share their knowledge and expertise through participation in international conferences and other forums. IADI currently represents 79 deposit insurers. IADI has grown to become an international standard setter and collaborates with key developmental partners such as the Basel Committee of Banking Supervision(BCBS), World Bank (WB) and International Monetary Fund (IMF) among others. IADI is a non-profit organization constituted under Swiss Law and is domiciled at the Bank for International Settlements (BIS) in Basel, Switzerland

     

    Mr Chikura is also the current Chairman of IADI’s Africa Region with an oversight of over 12 markets namely Nigeria, Kenya, Sudan, Tanzania, Uganda, Libya, Republic of Mauritius, South Africa, Malawi, Mozambique, Lesotho and Algeria, among others.

     

     

    ---- End -----

     

     

    For more information, please contact:

     

    Allen Musadziruma

    Public Relations Manager

    Tel: +263(4) 250900/1

    Cell: +263 716 801 310

    amusadziruma@dpcorp.co.zw

     

     

    Notes:

     

    • The Deposit Protection Fund is established under Section 13 of the Deposit Protection Corporation Act [Chapter 24:29]. The primary objective of the Fund is to compensate depositors in full or in part, for losses incurred in the event of insolvency of a contributory institution. The Fund is vested in and administered by the Deposit Protection Corporation (DPC). The Corporation commenced operations on the 1st of July 2003, and its primary objective is to provide deposit protection to depositors in institutions licensed to operate banking or finance business in Zimbabwe  such as commercial banks, merchant banks, building societies, finance and discount houses.
    • DPC plays a key role in contributing to the stability of the financial system and enhancing depositor confidence in the financial system by establishing a framework for the resolution of failing or failed banks.
    • Deposit protection is a free service for all bank depositors and no application forms are required as coverage is automatic on account opening.
  • DPC attends ZNCC Financial Sector Indaba >>

    [13-Nov-2014]

    The Zimbabwe National Chamber of Commerce (ZNCC) in collaboration with Global Econometer Capital hosted a full day workshop on November 13 in Harare - dubbed the Financial Sector Indaba - whose aim was to bring together  bankers, industrialists, fund managers, insurance gurus and senior government officials.

     

    The objective was to provide a platform for stakeholders to deliver on issues that help to promote financial sector growth in Zimbabwe through. The Indaba sought to achieve the following aims:

     

    • to change the face of the financial services sector in Zimbabwe through open deliberations by experts who will proffer long lasting solutions to the sectoral needs of the industry without any bias.
    • to allow for the incumbent central bank governor to tap from the rich and diverse ideas of both the academic and business community on the way forward in solving the seemingly perennial liquidity challenges bedeviling the economy.
    • to help deepen the consultative process in financial services sector management, a process which was only limited to national budget formulation

     

    DPC as a key stakeholder in the financial services sector, also attended the Indaba.

  • RBZ suspends Tetrad's banking activities >>

    [12-Nov-2014]

    THE Reserve Bank of Zimbabwe (RBZ) has suspended Tetrad Investment Bank from taking deposits and issuing loans until the troubled institution has completed its recapitalisation exercise.

     

    In a notice yesterday, RBZ said the action “has been considered necessary in order to protect the public while the bank implements the Scheme of Arrangement”.

     

    “Further, take notice that the Registrar of Banking institutions has, with immediate effect, suspended Tetrad Investment Bank Limited’s banking activities pertaining to deposit taking and issuing loans, in terms of section 48 (1) (f) of the Banking Act and this suspension remains for the duration of the Scheme of Arrangement,” RBZ said.

     

    In August, Tetrad creditors voted for the scheme meeting that agreed to defer claims until October 31 to allow processes to recapitalise the institution.

    The creditors further agreed to January 31 2015 to allow Russian investor Horizon Capital to finalise acquisition of a controlling stake in the bank.

    Before the scheme meeting, creditors had obtained writs of execution to attach the bank’s assets.

     

    The move by RBZ could signal that the regulator has lost patience with the bank after it had on a number of occasions said it would finalise the recapitalisation exercises.

    In his maiden monetary policy statement, RBZ governor John Mangudya said Tetrad, alongside MetBank, Allied Bank and AfrAsia Bank, were facing liquidity and solvency challenges due to liquidity, macro and institution-specific challenges.

     

    He said the distressed banks command low market share in terms of loans (8,8%), assets (7,2%) and deposits (6,7%) as at June 30 2014. Mangudya said RBZ has been engaging the distressed institutions to come up with credible plans to turn around their dire financial condition.

    “In this regard, shareholders and boards of the distressed banks have been directed to finalise implementation of their turnaround plans, failure of which the Reserve Bank will be left with no option but to intervene and institute appropriate supervisory action in terms of the Banking Act,” he said.

     

    In a recent interview with NewsDay, Tetrad Group chief executive officer Eugene Mlambo said the interim relief provided by the scheme meeting would enable the bank to go forward and complete the investment transaction.

    “This will ultimately return the bank to normal, allowing all of its commitments to all creditors and depositors to be met within a reasonable period of time,” Mlambo said.

     

    (Source: https://www.newsday.co.zw/2014/11/13/rbz-suspends-tetrad-tetrad-investment-bank-operations/)

  • Tetrad creditors agree to further 3-month extension >>

    [6 Nov-2014]

     

     

     

     

     

     

     

     

     

    A Russian investor, Horizon Capital Consortium, is eyeing a controlling stake in the bank and its representative attended the August scheme meeting.

     

    In a notice yesterday, chairperson of the scheme meeting Retired Justice George Smith said the extension of the scheme followed consultations with creditors.

     

    “After consultation with the creditors of the bank in accordance with paragraph 2,2 of the provisions of the order the High Court order dated 24 September 2014, I hereby declare that the Scheme is extended from 31st October 2014 until 31 January 2015,” Smith said.

    Before the August meeting, TIB’s assets had come under attack from creditors after the bank failed to honour its obligations and claims.

     

    In July, the bank approached the High Court seeking relief from creditors.

     

    High Court judge Justice Nokuthula Moyo then ruled that Justice Smith, or any other person nominated by creditors, should chair a meeting of creditors to get a deferment on claims until the recapitalisation of the bank had been completed.

     

    In his maiden monetary policy statement, Reserve Bank of Zimbabwe (RBZ) governor John Mangudya said TIB, alongside MetBank, Allied Bank and AfrAsia Bank, were facing liquidity and solvency challenges due to liquidity, macro and institution-specific challenges.

     

    He said the distressed banks command low market share in terms of loans (8,8%), assets (7,2%) and deposits (6,7%) as at June 30 2014.

     

    Mangudya said RBZ has been engaging the distressed institutions to come up with credible plans to turn around their dire financial condition.

     

    “In this regard, shareholders and boards of the distressed banks have been directed to finalise implementation of their turnaround plans, failure of which the Reserve Bank will be left with no option but to intervene and institute appropriate supervisory action in terms of the Banking Act,” he said.

     

    In a recent interview with NewsDay, Tetrad Group chief executive officer Eugene Mlambo said the interim relief provided by the scheme meeting would enable the bank to go forward and complete the investment transaction.

     

    “This will ultimately return the bank to normal, allowing all of its commitments to all creditors and depositors to be met within a reasonable period of time,” Mlambo said.

     

    (Source: https://www.newsday.co.zw/2014/11/06/tetrad-creditors-agree-3-month-extension/)

     

    TETRAD Investment Bank (TIB) creditors have agreed to defer claims by another three months to January 31 next year to allow the troubled institution to recapitalise.

     

    In August, 84,94% of the bank’s creditors voted for the scheme meeting that agreed to defer claims until October 31 to allow processes to recapitalise the institution.

     

     

  • DPC receives Silver Award at the 2014 SMEs International Expo >>

    [22-25 Oct-14]

     

    We are humbled by the recent recognition we received at the recently held 2014 SMEs International Expo where the Deposit Protection Corporation (DPC) received the Silver Award under the Services Marketing category. The award is a recognition of our publicity efforts in raising awareness of DPC brand and services we offer in providing free deposit protection to all bank depositors in commercial banks, building societies, merchant banks, finance houses and discount houses.

     

    The SMEs International Expo is is an annual exhibition which is meant to bring SMEs and other corporates together to showcase their products and services. It creates a platform for these businesses to network and share ideas and to establish strategic alliances for enhanced growth. The fourth edition of the Expo was held from 22-25 October 2014 at the Rainbow Towers (HICC) under the theme, "Harnessing Technology and Innovation to Boost SMEs Trade Potential."

     

    The SMEs International Expo falls within DPC's strategic public awareness plan as it offers opportunities for DPC to interact with business owners (SMEs) and the general visiting public and educate them on the DPC and availability of the deposit protection scheme.

     

    Highlights of the 2014 Expo:

    • The exhibition provided a good opportunity for DPC to interact with exhibitors mostly SMEs and the visiting public and educate them on our brand and services.
    • We enjoyed excellent brand visibility through display of our branding materials, corporate wear, corporate gifts and the strategic location of our stand.
    • Visitors to our stand could recall our brand largely from our participation at the previous events and advertising efforts in media such as print, radio, online and television.
    • Some of the local participants included CBZ, Old Mutual, TelOne, POSB, ZIMRA, Steward Bank, NetOne (main sponsor), Edgars, ZBC, Nyaradzo, Agribank, DHL and Daily News among others.
    • International participants were drawn from the Embassy of Indonesia, South Africa, and Netherlands.

    Expo in Pictures:

    DPC banner and brochures at the entrance.

    Caroline Masiyandima assisting a client.

    Allen Musadziruma and Taurai Togarepi (far right) explaining to clients on the deposit protection scheme.

    DPC banner providing greater visibility of the brand to the exhibitors and visitors

  • Consumer Protection Bill launched >>

    [13-Oct-14]

     

    CONSULTATIONS for the Consumer Protection Bill are expected to begin soon as government yesterday launched the Bill that will protect consumers.

     

    Speaking at the launch of the Draft Consumer Protection Bill, Industry and Commerce minister Mike Bimha said the Bill had been long awaited to safeguard the interests of consumers.

     

    “Since independence in 1980, we have not had a comprehensive Consumer Protection Act. Instead, we had pieces of legislation that are implemented through line ministries to protect and advance interests of consumers,” Bimha said.

     

    Bimha said the Bill seeks to promote a fair, efficient and transparent marketplace for consumers and business, to promote consumer rights to basic needs, to provide for improved standards of consumer information, to prohibit unfair competition, marketing and business practices.

     

    The Bill will establish the Consumer Protection Commission, a body that will be capable of suing and being sued in its corporate name and subject to the Act, of performing all acts that bodies corporate may by law perform.

     

    The commission shall have a chief executive officer, representatives from Environmental Management Agency, farmers’ associations, Competition and Tariff Commission, Standard Association of Zimbabwe, Zimbabwe National Editors’ Forum, industry and commerce, among others.

     

    The commission will co-ordinate and network consumer activities and liaise with consumer organisations, promote fair business practices, protect consumers from unconscionable, unreasonable, unjust or otherwise, regulate the formation of some consumer protection bodies for specific sectors and have an oversight on sector-specific bodies established under the Constitution.

     

    Consumer Council of Zimbabwe executive director Rosemary Siyachitema said: “The consultations will take three to four months to do our rounds for the eight consultative workshops countrywide. We will have meetings in the places that Consumer Council of Zimbabwe has offices.”

     

    Siyachitema said they would interact with consumers on social media and will learn from the South African experience which already has legislation in place to protect consumers.

     

    (Source: https://www.newsday.co.zw/2014/10/16/govt-launches-consumer-protection-bill/)

  • Breakfast Workshop for Banks held in Harare >>

    [7-Oct-14]

     

    The Deposit Protection Corporation hosted a Breakfast workshop in Harare for local banks on the 7th of October 2014. The workshop was meant to educate member banks on the Publicity Requirements of the Deposit Protection Scheme.

     

    In addition to all member banks invited, other participants included the Reserve Bank of Zimbabwe, Association of Building Societies and journalists from various media houses such as Newsday, ZBC, Spot FM, The Herald, Daily News, The Source, Business Connect and ZimMail.

     

    DPC CEO Mr John Chikura delivered a presentation on the Overview of the Deposit Protection System so as to give the participants an overview and appreciation of what DPC and Deposit Protection Scheme entails. The Public Relations Manager Mr Allen Musadziruma also presentated on the Publicity Requirements of the Deposit Protection Scheme which was meant to explain the requirements of banks to participate in the publicity of the Scheme as required by the law and the communication tools banks will be utilizing going forward such as:

    • display of cover certificates in all banking halls.
    • display of posters and brochures in all banking halls.
    • display of membership stickers on door entrances and ATM areas.
    • display website banners (membership signs) on bank's website.
    • mention of DPC or display of its logo on all advertising materials by banks (print, radio, television, outdoor and online).

     

    Publicity of the Deposit Protection Scheme as required by law (DPC Act Chapter 24:29 and Statutory Instrument 156 of 2013) will go a long way in increasing public awareness of the existence of DPC and deposit protection scheme. If the public is informed on the availability of free deposit protection and recourse in the event of a bank failure, this will greatly assist in enhancing their confidence in the financial system and will greatly contribute to financial stability for the benefit of the financial system and economy at large.

     

     

    Part of the delegates that attended the Breakfast Workshop.

    Mr A. Musadziruma showing the delegates a sample of the cover certificate which they will be displaying in all branches countrywide.

    CEO - Mr J. Chikura delivering his presentation to delegateson the “Overview of the Deposit Protection Scheme.”

  • Trust Bank placed under liquidation >>

    [30-Oct-14]

     

    TRUST Holdings’ banking subsidiary, Trust Bank, has been placed under provisional liquidation after shareholders withdrew court papers opposing liquidation of the bank.

     

    This comes about nine months after the Deposit Protection Board initially announced it was instituting liquidation procedures following cancellation of its licence by the Reserve Bank of Zimbabwe in December last year due to a weak capital position and abuse of depositors’ funds.

     

    But Trust successfully opposed the liquidation arguing that the institution was on the verge of concluding a recapitalisation agreement with an unnamed South African investor.

    Trust also questioned the logic of the central banks’ push for the bank’s liquidation when it was clear that the lender of last resort was itself insolvent and had to be saved by legislative intervention otherwise it would have ceased to exist. It further stated that Trust’s operations were severely hampered by the RBZ’s “unlawful” decision to sale its assets to Allied Bank at the height of the banking crisis in 2003.

     

    The provisional liquidation order was with effect from October 20 and will run for the next six months to allow the bank to conclude its recapitalisation with the SA investor.

     

    “They have used the term provisional liquidation because Trust bank’s licence was revoked,” said one source who requested not to be named.

     

    “Technically, it is a form of curatorship, because the bank was given a six months ultimatum to recapitalise of which failure to do so within that period will result in the bank winding up.”

     

    DPC chief executive Mr John Chikura confirmed the development yesterday.

     

    “I can confirm that the provisional liquidation order was granted. It is a normal liquidation process,” he said.

     

    In December last year, the central bank cancelled the banking licence for Trust Bank over allegations of abuse of depositors’ funds and violation of the Banking

     

    Act. This was for the second time in eight years that Trust Bank has lost its banking licence.

     

    The bank was financially unsound and was not operating in line with sound administrative and accounting practices and procedures.

     

    In particular, the bank was critically undercapitalised with core capital of $1,9 million and had been posting persistent loss.

     

    Prior to the cancellation of its licence by the central bank, the institution had been facing critical liquidity challenges emanating from the poor loan book and the inadequate working capital and gross abuse of depositors funds.

     

    No comment could be obtained from Mr William Nyemba by the time of going to print yesterday.

     

    (Source: http://www.herald.co.zw/trust-bank-placed-under-liquidation/)

     

     

  • DPC exhibits at the Mashonaland East Provincial Agricultural Show  >>

    [24-27 Sep-14]

     

    The Deposit Protection Corporation (DPC) successfully exhibited at the Mashonaland East Provincial Agricultural Show which was held from 24-27 September 2014 in Marondera. The Show was held under the theme: Food Security through Sound Agriculture.

     

    The Corporation participated at this year’s Show in fulfilment of its continued efforts to intensify brand awareness and educate the public on deposit protection including those in areas outside the major cities such as Harare and Bulawayo.

     

    Highlights:

    • The Agricultural Show provided an excellent platform to showcase our brand through display of banners, distribution of brochures and branded corporate gifts such as calendars, pens, key-rings, t-shirts, caps and pens thus increasing public awareness and visibility of DPC.
    • The public greatly appreciated the availability of a deposit protection scheme which is free of charge and feedback shows that the scheme greatly inspires the confidence in the financial system as depositors are now aware their deposits are covered and theyr can be reimbursed in the event of a bank failure.
    • The Show provided an opportunity to raise financial literacy as people enquired on financial products we cover and what they entails.

     

    The Corporation will increase participation at Provincial Shows in 2015 by attending exhibitions such as in Mutare, Chinhoyi, Masvingo, Kariba and Gweru among others in order to ensure we take deposit protection to the people, enhance public confidence in the financial system and contribute to the stability of the financial system in Zimbabwe.

     

     

    Some of the visitors having received their corporate gifts for correctly answering some of the questions on what they had learnt about DPC.

    Mr Charles Kusaya (L) taking clients through what deposit protection is all about..

    Our stand in the Hall of Commerce.

  • DPC exhibits at Harare Agricultural Show  >>

    [20-30 Aug-14]

     

    The 104th edition of the Zimbabwe Agricultural Show (ZAS) was held in Harare from 20-30 August 2014 under the theme: Sustaining and Transforming Agricultural Growth. The Deposit Protection Corporation participated at this year’s exhibition in its continued efforts to intensify brand awareness and educate the public on deposit protection.

     

    Highlights of Participating:

     

    • The Agricultural Show provided an excellent platform to showcase our brand through display of banners, distribution of brochures and branded corporate gifts such as calendars, pens, key-rings, t-shirts, caps and pens thus increasing public awareness and visibility of DPC.
    • Feedback from the public in terms of brand visibility eas positive as some people who visited the stand knew about DPC from previous exhibitions, newspaper articles and some were depositors of closed banks.
    • During the course of the exhibition, DPC flighted an editorial in the Business Connect as a way to market our brand, information on deposit protection and raising awareness to depositors in closed banks such as Trust, Royal and Genesis to visit our stand and submit their claim forms.

     

    Summary of ZAS Program:

    a) 20 August - Culture and Social Fair

    b) 20-21 August - Trade days, stand judging days.

    c) 22 August - Official opening day which was officiated by His Excellency, President R.G. Mugabe.

     

     

    Show in Pictures:

     

    Our stand in the Hall of Commerce

    DPC banners at the entrance to the Hall of Commerce.

  •  RBZ Public Notice - Cancellation of Licence (Capital Bank) >>

     [4-Jun-14]

     

    Public Notice - Cancellation of Licence (Capital Bank)                          (Download)

  •  DPC exhibits at the Zimbabwe International Trade Fair (ZITF), Bulawayo  >>

     [22-26 Apr-14]

     

    The 55th  edition of the Zimbabwe International Trade Fair (ZITF) was held in Bulawayo from 22-26 April 2014 under the theme: New Ideas to New Heights – Progress through Innovation. We are pleased to advise that the Corporation participated at this year’s exhibition in its continued efforts to intensify brand awareness and educate the public on deposit protection.

     

    Highlights of Participating:

    • Exhibition provided an excellent platform to showcase our brand through display of banners, distribution of brochures and branded corporate gifts such as calendars, pens, key-rings, t-shirts, caps and pens.
    • There was an overwhelming interest on deposit protection from the huge numbers of people that  visited our  stand.
    • The Corporation also benefited through networking opportunities with other industry stakeholders. We managed to establish interest from a Member of Parliament, consumer advocacy body and City Councils for future speaking engagements during public forums in their localities.
    • Press advertisements were flighted in the Chronicle, and an editorial was also flighted in the Business Connect. This was an excellent way to market the brand and information on deposit protection on a wider scale.

     

    Summary of ZITF Program:

    a) 22-24 April: Business days (3 days exclusive for business to business selling).

    b) 23 April: International Business Conference Day which was attended by delegates from industry and commerce and was held under the theme: Technology and Innovation: A Key Pillar for ZimAsset’s Successful Implementation.

    c) 25 April: Official opening day which was officiated by His Excellency, President R.G.  Mugabe.

    d) 25-26 April: Public Days.

     

    ZITF in Pictures:

     

     

    DPC CEO, Mr Chikura (in pink shirt) at the stand attending to customers as well.

    DPC team from left - Wisdom Mandizvidza, Rusununguko Moyo & Caroline Masiyamdima

    DPC stand in the Hall of Commerce.

    Mr V. Vuma (Legal Counsel/Corporate Secretary) attending to a customer enquiring on deposit protection.

  •  DPC presents at the Consumer Council of Zimbabwe (CCZ) World Consumer Day Symposium, Harare  >>

     [18-Mar-14]

     

    The Deposit Protection Corporation (DPC) participated at this year’s Consumer Council of Zimbabwe (CCZ) World Consumer Rights Day Symposium that was held at Cresta Lodge on the 18th of March 2014. The annual event which is also commemorated globally, seeks to recognize and promote the  rights  of consumers in the marketplace. This year’s event was held under the theme “Fix Our Phone Rights.”

     

    The event was graced by officials from the Ministry of Industry & Commerce, Bankers Association of Zimbabwe, Econet, Telecel, NetOne, POTRAZ and the Reserve Bank of Zimbabwe among other organisations to deliberate on policy issues around consumer protection with a focus on the mobile banking industry.

     

    The Corporation had an opportunity to deliver a presentation on the topic: The Dynamics of Deposit Protection Corporation in Protecting Consumers Looking at Mobile Banking - which was articulated by Mr Morris Murau (Manager – Risk Assessment & Surveillance).

     

    The event also presented the Corporation with an opportunity to market the brand to the delegates through display of banners, corporate brochures and sponsorship of branded pens.

     

     

     

    Hon. C.I. Mabuwa (Deputy Minister, Ministry of Industry and Commerce) giving her keynote address.

    Mr Murau from DPC delivering his presentation to over 100 delegates who attended the Symposium.

  • DPC CEO Mr John Chikura ZTV Interview on deposit insurance and multi-currency in Zimbabwe  >>

    [18-Feb-14]

     

  • DPC Public Notice - Trust Bank Corporation Limited  >>

    [16-Jan-14]

     

    DPC issues Public Notice on Trust Bank Corporation Limited                                                    (Download)

  • RBZ Public Notice - Cancellation of Banking Licence (Trust Bank Corporation Limited) >>

    [6-Dec-13]

  • New Banking Sector Regulations Gazetted >>

    [4--Dec-13]

    Government has gazetted a new set of banking sector regulations that seeks to protect the interests of depositors with a view of increasing savings in the economy.

     

     

    According to Statutory Instrument 156 of 2013 gazetted on the 8th of November this year, depositors will be paid their funds immediately after a financial institution is placed under curatorship.

     

    The new set of regulations also seeks to increase savings within the economy by the regular monitoring of financial institutions’ capitalisation levels.

    Deposit Protection Corporation CEO, John Chikura told the ZBC News that the new regulations will also facilitate public confidence as well as stability in the banking sector.

     

    “These are the set of regulations that we believe will restore depositors’ confidence,” he said.

     

    The government and banks are crafting strategies aimed at increasing depositors’ confidence in the banking sector at a time official estimates show that more than US$2 billion is circulating outside the formal financial sector.

     

    Source: http://www.zbc.co.zw/news-categories/business/39481-new-banking-sector-regulations-gazetted.html

  • DPC Public Notice - Royal Bank >>

    [23--Apr-13]

    Public Notice - Cancellation of Licence (Royal Bank)                          (Download)

  • DPC Public Notice - Royal Bank >>

    [11--Mar-13]

    Public Notice - Cancellation of Licence (Royal Bank)                          (Download)

  • DPC Public Notice - Genesis Investment Bank >>

    [28--Jul-13]

    Public Notice - Cancellation of Licence (Genesis Investment Bank)                          (Download)

 

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