SARB says tighter controls introduced to protect consumers against bank collapses
The reserve bank on Thursday launched the long-awaited Corporation for Deposit Insurance Scheme, which is expected to protect individual customer cash deposits up to R100,000.
The South African Reserve Bank (SARB) governor, Lesetja Kganyago, in studio with Clement Manyathela in July 2023. Picture: Karabo Tebele/702.
JOHANNESBURG - The South African Reserve Bank (SARB) said it put in place tighter controls to protect consumers against the collapse of banks.
This was after the long-awaited launch of the Corporation for Deposit Insurance Scheme was launched on Thursday.
The fund is expected to protect individual customer cash deposits up to R100,000.
Reserve Bank governor, Lesetja Kganyago, said the depositor’s insurance was an important milestone for making the financial system safer.
“A recent example is when VBS Mutual Bank went into curatorship, its regular depositors were provided with accounts at another bank, which carried for amounts up to R100,000, covering 98% of that bank’s depositors.”