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DPC pays out $477 000 to bank depositors

14 Jan, 2015 - 00:01 0 Views
DPC pays out $477 000 to bank depositors

The Herald

Walter Muchinguri Assistant Business Editor
The Deposit Protection Corporation has so far paid out about $477 000 to depositors of Genesis, Trust and Royal banks. The DPC said that it continues to make payments although some depositors are reluctant to come forward. “Payments to Genesis, Trust and Royal Bank depositors are still in progress. The response from the depositors of the above mentioned banks has increased slightly.

“The majority of the clients that have not responded to our calls and adverts are those whose deposit balances are below $5,” the DPC said.

The figure paid out represents about half the $812 523,14 of total insured deposits held by the DPC.

The bulk of the $476 979, $353 180 was paid out to Royal bank depositors. The figure represents about 74,79 percent of the bank’s deposits while total insured deposit for the bank are $472 206,69.

Trust bank depositors have so far been paid $115 428 which is about 35 percent of the bank’s total deposits while the bank’s total insured deposits amounted to $328 516,45.

The least amount of $8 371 was paid to Genesis depositors representing 70,94 percent of the bank’s total deposits while total insured deposits amounted to $11 800.

In terms of remittances to the DPC by banks, the corporation said it was making follow ups.

“Only a few banks facing liquidity challenges have been struggling to remit contributions,” it said.

Meanwhile the DPC said it will start paying Allied bank depositors once the provisional order has been granted by the High Court.

The Reserve Bank of Zimbabwe last week cancelled Allied Bank’s operating licence on the basis that the institution was no longer in a safe and sound condition. This followed a voluntary surrender of the licence by the banking institution. The Deposit Protection Fund was established under Section 13 of the Deposit Protection Corporation Act [Chapter 24:29].

Its primary objective is to compensate depositors in full or in part, for losses incurred in the event of insolvency of a contributory institution.

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