DPC records $1.644 bln surplus
The Deposit Protection Corporation (DPC) says it recorded a surplus of $1,644 billion in 2022, up from a surplus of $1,324 billion in 2021, mainly driven by premium income.
On a historical cost basis, the corporation achieved a surplus of $2,793 billion in 2022, up from $514 million in 2021.
According to DPC 2022 financials, total income increased by 354 percent from $691.3 million in 2021 to $3,137 billion in 2022.
“The increase, which was driven mainly by premium income, is attributable to a significant increase in the total deposit base,” said DPC acting chief executive Gift Chirozva.
He said the foreign currency premium rate was adjusted to 0.2 percent in the last quarter of the year, up from 0.15 percent.
Other funding sources included rental income and returns from investments.
Chirozva said that due to the positive financial performance, the corporation was able to execute its mandate successfully.
During the year under review, membership in the deposit protection scheme remained at 27,
with 20 contributing banking institutions (CBIs) and seven (7) deposit-taking microfinance institutions (DTMFIs).
Ndoro Microfinance Bank became a member of the scheme in May, while CBZ Building Society merged with CBZ Bank at the end of September 2022.
Chirozva said deposit protection cover levels for contributory banking institutions were pegged at $120,000 and US$1,000 per depositor per deposit class per bank.
“At these cover levels, 97.4 percent (Zimbabwe Dollar) and 96.3 percent (USD) of the depositors’ accounts were covered in full.
Deposit-Taking Microfinance Institutions (DTMFI’s) deposit protection cover levels were $5 000 and US$500 per depositor per deposit class.
Chirozva said the main source of funding for the Deposit Protection Corporation is premium income levied on contributory institutions at a rate of 0.3 percent and 0.20
percent per annum on average eligible deposits for Zimbabwe Dollar and FCA deposits, respectively.
“Investment income and rentals provide additional sources of funding,” he said.
He noted that the total assessed premium income for the year was $1.2 billion, up 123.5 percent from $537.5 million assessed in 2021 and US$2.5 million.
“The FCA premium rate will gradually increase to match the Zimbabwe dollar at 0.30 percent from December 31, 2023, to comply with best practices as enshrined in the International Association of Deposit Insurers (IADI) Core Principles for Effective Deposit Insurance Systems (CPs), especially Core Principle #8 and Essential Criteria numbers 7 and 9,” he
said.-ebusinesswekly
