SARB to provide most depositors with automatic bank-failure cover
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GUEST – Yolanda Vatsha – SARB Chief of Staff
The South African Reserve Bank (SARB) has officially launched the Corporation for Deposit Insurance (CODI) to boost confidence and trust in the financial system. CODI will protect qualifying depositors, including individuals and non-financial businesses in the event of a possible bank failure by providing cover of up to R100 000 per bank. SARB says CODI, which will be its newest subsidiary, will protect nine out of 10 qualifying depositors in the country, though in rand terms this will equate to only about 23% of total deposits.
The South African Reserve Bank (SARB) has officially launched the Corporation for Deposit Insurance (CODI) to boost confidence and trust in the financial system. CODI will protect qualifying depositors, including individuals and non-financial businesses in the event of a possible bank failure by providing cover of up to R100 000 per bank. SARB says CODI, which will be its newest subsidiary, will protect nine out of 10 qualifying depositors in the country, though in rand terms this will equate to only about 23% of total deposits.