Bankers Depositors' bill will restore confidence in the banking sector

Parliament on Monday July 5 passed the Ghana Deposit Protection Bill, 2015 to protect the savings of depositors and also promote confidence in the financial system.

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The Ghana Deposit Protection Bill will restore confidence in the banking sector, President of the  of the Chartered Institute of Bankers, Clifford Mettle, has said.

Parliament on Monday July 5 passed the bill in a move to protect the savings of depositors and also promote confidence in the financial system.

READ MORE:Deposit Protection Bill passed by parliament

play Parliament on Monday July 5 passed the Ghana Deposit Protection Bill, (File Photo)

 

The bill became necessary in the wake of the microfinance financial crisis involving DKM Microfinance Company and four other Savings and Loans Company in the Brong Ahafo Region.

The bill will become law after the president assents to it.

Mettle said the bill was long over due and that it should have been in place years back to protect the savings of SME customers.

“I think it is long overdue because this bill should have been in place a couple of years back. If you look at the composition of the depositors, they are largely SMEs and looking at how vulnerable they are, this should have been done long ago to protect them,” Mr. Mettle told the Business and Financial Times.

He added: “It will restore confidence and shoot up the level of credibility in the banking sector because the recent scandal that happened in the financial sector dealt a very big blow to the confidence of depositors. So this new law will restore such confidence and erase any fears which come with depositing your money with any financial institution.”

The bill requires the establishment of Deposit Protection Fund Corporation where the banks and depositors pay an amount when they deposit their money to the Corporation.

READ MORE: Deposit Insurance Bill reaches Parliament

Finance Minister Seth Terkper said the bill will protect people with a savings or current account who deposit money in the bank.

play Seth Terkper , Finance Minister

 

“Now we all heard about the global financial crises where because of certain developments in the banking and financial sector a lot of depositors lost their money,” he added.