The Reserve Bank is hoping that SA’s new deposit insurance scheme will help to drive an increase in the interest rates banks pay on deposits and enhance smaller banks’ ability to compete, at the same time as it underpins trust in the banking system.

The Bank on Thursday launched the new scheme, which was first mooted during SA’s 2002 small-banks crisis and is designed to protect customers losing deposits if a bank fails. The new Corporation for Deposit Insurance (Codi) will protect the deposits of individual and non-financial business customers up to R100,000...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.