The newly created Deposit Insurance Protection Corporation (DIPC) will become fully operational by the beginning of October this year, Governor of BoG, Dr Ernest Addison has said.
The DIPC is meant to protect people with small savings from losses incurred as a result of the occurrences of an insured event such as the revocation of a Deposit Taking Institution’s license.
Dr Addison, who disclosed this at the 19th annual working luncheon of Ghana Association of Bankers (GAB) in Accra on Friday, said the BoG had already sent letters to banks to begin “a process of onboarding after agreeing on an annual premium of 0.3k to 1.5 per cent of insurable deposits with participating institutions”.
The programme attended players in the banking industry provided opportunity for the Governor to share with participants the latest information on the reforms being embarked on by his outfit to build a viable and strong banking industry.
The Governor explained that deposit insurance was one of the key pillars in securing financial sector stability of the country and the BoG, which is the project implementation authority, would support the DIPC for three years to ensure its sustainability.
Dr Addison explained that the agreed payout in the event of bank failure and revocation of licences of banks had been pegged at GH¢6250 per customer for banks and GH¢1250 per customer for specialised deposit-taking institutions.
The Governor indicated that the BoG would continue with its regulatory reforms and efforts at strengthening the internal structures of the bank to prevent complicity of staff with third parties in the course of the discharge of their supervisory duties.
The President of GAB, Alhassan Andani said the banking industry currently was strong, resilient, liquid and profitable as a result of the reforms embarked on by the Bank of Ghana.
He entreated the BoG to help the banks address the ongoing operational challenges to build a vibrant banking industry.
Mr Andani who is the Chief Executive Officer of Stanbic Bank said the banks were ready to implement the deposit insurance programme.
By Kingsley Asare