The Ghana Deposit Protection Corporation (GDPC) has received €13 million in addition to the ₵400,000 paid to the banks as seed money for the smooth commencement of the corporation.
The amount was contributed by the Bank of Ghana (BoG) and the government with the aim of boosting the GDPC’s reserves to ensure that it provide cushion for depositors in case of any bank failures.
This was announced on the 18th of November at the 2019 International Association of Deposit Insurers (IADI) Africa Regional Committee Technical Assistance workshop in Accra by Vice-President Dr. Mahamudu Bawumia.
The event on the theme “Deposit protection – A catalyst for financial stability” had participants coming from all around the world.
The Vice-President, Dr. Bawumia, asserted that the establishment of the GDPC is in the right direction and it would add up to Ghana’s financial safety not apparatus, enable safe and sound financial system and uplift depositor’s confidence.
He added that “It is an important step to boosting the confidence of the Ghanaian depositor. And it is part of efforts to lock-in the gains of financial sector reforms carried out over the last two years”.
Dr. Ernest Addison, the governor of BoG speaking on bank failures said the establishment of deposit insurance put the state in a readiness to better manage the failures of banks and deposit-taking financial institutions in future.
“To curtail the potential adverse effects of bank failures on state resources and enhance public confidence in the financial system, the establishment of depositor’s protection scheme has become the norm” Dr. Enerst added.
The GDPC will reimburse depositors six days after a bank failure and a resolution for notification by the BoG.