Vice President Dr. Mahamudu Bawumia has called on the Management and Board of the newly established Ghana Deposit Protection Corporation (GDPC) to ensure that it engages in constant education of the Ghanaian public about the scheme, it’s operations and the benefits that it offers depositors.
Addressing the International Association of Deposit Insurers (IADI) Africa Regional Committee (ARC) Technical Assistance Workshop on the theme, ‘Deposit Protection, a Catalyst for Financial Stability’ at the Marriott Hotel, Vice President Mahamudu Bawumia said the Corporation is assured of government’s support as far as its mandate of ensuring that it grows to become an important safety net in the Ghanaian financial sector as concerned.
“Operating in a largely reformed financial sector, the Corporation needs to ensure the necessary public education about the scheme, its operations and benefits to every depositor,” Vice President Mahamudu Bawumia said.
“Such an education is an invaluable public good and we must get on with it as soon as possible,” Dr. Bawumia added.
David Walker, the Secretary General of the IADI in his remarks noted that deposit insurance is a growing phenomenon in the world and it is a good mark for Ghana for joining the fraternity of deposit insurers.
“In IADI, the Africa regional community is the fastest growing region and I think this is an area where we are seeing a number of deposit insurers, in addition to Ghana, that are setting up systems that are coming on stream so I think this is just really a pivotal time in the history of Africa,” the Secretary General of IADI stated.
“Deposit insurance has become an integral part of Africa’s financial development and I think that is something that you can be very proud of,” Mr. Walker added.
In his statement, Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, said it has become increasingly very important for the Central Bank to take interest in deposit insurance in light of bank failures in the country.
“To curtail the potential effects on state resources and enhance public confidence in financial systems, the establishment of Deposit Protection Scheme to protect depositors from loses in the event of the failure of the banks or sales has become the norm,” Governor Addison said.
“Ghana does not wish to be left behind in this global drive to develop deposit insurance schemes to maintain financial stability. The Ghana Deposit Insurance scheme is long overdue. It is for this reason that the Ghana Deposit Protection Corporation was established by Ghana Deposit Protection Act 2016, Act 931 as amended to protect small depositors against loses in the event of the materialization of an insured financial sector shock,” the Central Governor added.