The Wasu Post
EST 2019 – THE REAL NEWS FROM THE EAST
DPC CEO Hopewell Zinyau Highlights Progress and Challenges at Regional Workshop in Mutare
By Fanuel Chinowaita
https://whatsapp.com/channel/0029VaegNlDATRSuMOm4IU0X
30 November 2024
The Deposit Protection Corporation (DPC) convened a regional awareness workshop yesterday at Holiday Inn, Mutare, bringing together bankers and media personnel to deepen understanding of the DPC’s role in safeguarding financial stability.
Addressing the attendees, DPC Chief Executive Officer Hopewell Zinyau outlined the corporation’s achievements, challenges, and its vision for fostering confidence in Zimbabwe’s financial sector.
Zinyau underscored the vital mandate of the DPC, which includes protecting depositors by compensating them when financial institutions fail, stabilizing the financial system, and contributing to economic growth.
He stated, “Our core responsibility is to ensure depositors’ funds are safeguarded and to provide timely compensation in the unfortunate event of institutional failures. Beyond that, we actively promote sound business practices, resolve failing institutions, and educate the public about the importance of deposit protection.”
Reflecting on the organization’s key accomplishments, Zinyau highlighted how the DPC has successfully compensated thousands of depositors following the closure of several institutions, reinforcing public trust in the financial sector. He added that significant strides had been made in extending coverage to previously underserved sectors, such as microfinance banks.
“This expansion represents our commitment to financial inclusion, particularly for small depositors who are often the most vulnerable,” he remarked.
However, Zinyau did not shy away from discussing the challenges faced by the corporation. He emphasized that a lack of awareness about the Deposit Protection Scheme, particularly in rural areas, remains a significant obstacle. “Many people still do not know that their deposits are protected up to a defined limit. This gap in knowledge leaves depositors unnecessarily vulnerable and affects their confidence in the banking system,” he said.
Additionally, Zinyau pointed to operational challenges, such as managing failing institutions efficiently and ensuring the Deposit Protection Fund remains well-resourced to handle crises.
To tackle these issues, Zinyau stressed the importance of public education and stakeholder engagement. He noted that workshops like the one held in Mutare were integral to spreading awareness and building partnerships with key players in the financial sector.
“By engaging with bankers and media professionals, we can amplify the message and ensure every Zimbabwean understands the protection afforded to them,” he explained.
During the workshop, Zinyau elaborated on the banks and institutions registered with the DPC, whose deposits are protected under the scheme. These include prominent commercial banks such as AFC Commercial Bank, BancABC, CBZ Bank, Ecobank, First Capital Bank, FBC Bank, Nedbank, Metbank, NMB Bank, Stanbic Bank, FBC Crown Bank, Steward Bank, and ZB Bank. Additionally, building societies like CABS, FBC Building Society, National Building Society, and ZB Building Society are covered.
Savings are also protected through institutions like the People’s Own Savings Bank (POSB). Development institutions, such as the Infrastructure and Development Bank of Zimbabwe (IDBZ), as well as deposit-taking microfinance institutions like African Century Limited, Getbucks Financial Services, Lion Microfinance Limited, and others, also fall under the DPC’s protection umbrella.
Zinyau explained the practical aspects of the claims process, assuring attendees that the DPC strives to ensure efficiency.
“After verifying a claim, we aim to process payments within seven working days, excluding weekends and public holidays. Whether it’s through mobile banking or traditional bank transfers, we prioritize convenience for our clients,” he stated.
As the workshop drew to a close, Zinyau reiterated the broader significance of deposit protection.
“At its core, deposit protection is about instilling trust in the financial system, preventing panic withdrawals, and ensuring economic stability. It is not just about compensation but about fostering resilience in the financial sector,” he said.
The workshop reflected the DPC’s ongoing efforts to engage with stakeholders and enhance public awareness, ensuring Zimbabwe’s banking environment remains secure, stable, and inclusive.