About
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 creation of the Fund is a Government policy in response to a growing need to moderate instability in the banking sector and to protect the public against the worst consequences of bank failure. Statutory Instrument 156 of 2013 outlining the rules and regulations governing the operation of the Deposit Protection Fund is in place. The statute specifies the prescriptions to be made by the Board regarding the amount of contributions payable by members, the amount of compensation paid to depositors in the event of bank failure, and the information to be submitted to the Board by contributory institutions. It also specifies how the Scheme will be funded and the types of deposits eligible for cover. The Fund offers limited coverage and guarantees that depositors will be paid in full up to the insured amount in the event of failure of a member institution. Currently, the prescribed maximum deposit compensation covers in full over 92% of all depositors operating accounts in contributory institutions. For more information on deposit protection, cover limit, deposits covered and excluded from cover.
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