PUBLIC COMMENT
Deposits insurance plan on track
The scheme aims to protect ‘less financially sophisticated depositors in the event of bank failure’
02 June 2017 - 05:54
Proposals for the design of an R18bn scheme to insure customer deposits, which includes dropping the minimum level of cash reserves banks are compelled to hold to fund the scheme, were published for public comment this week by the Reserve Bank. The deposit insurance scheme would protect "less financially sophisticated depositors in the event of bank failure", the document says. It proposes to insure up to R100,000 for each depositor at each bank and requires banks to consolidate a single customer’s balances held in different products across a bank into this single amount.
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