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.
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.
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.
“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
“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.