SARB: Deposit insurance will make banking safer
The South African Reserve Bank says the introduction of a new insurance scheme will make banking safer.
It launched the Corporation for Deposit Insurance (CODI) on Thursday, which will cover customers' savings if their bank collapses.
Reserve Bank Governor Lesetja Kganyago says the subsidiary would provide cover of up to R100,000 to each qualifying depositor per bank.
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He says they hope to avoid situations like the 2018 VBS bank collapse, which resulted in depositors losing their savings.
"The Corporation for Deposit Insurance is an important milestone in making the financial system safer and one that serves all South Africans. This means that should a Bank fail to meet its obligation; covered deposits are protected by having timeous access to their deposits."
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