By Brenda Nkosi
Deposit Insurance Corporation (DIC) has in the 15 months of operation managed to raise K8 billion, enough to pay out bank depositors in the event that any bank collapses today.
Manager Operations for DIC, Lowina Mwasigala, disclosed this on Tuesday in Blantyre during a training workshop of business journalists on deposit insurance in Malawi.
“So far we have collected about K8 billion. We have released our financial statements and they are now public information.
“We do not make profits; we make investment income that is part of our operations and the rest goes to the deposit guarantee fund that is going to be a buffer, to use as backup in case our payments amount has been depleted,” she said.
Mwasigala added that the current deposit account coverage is at 92.7 percent.
“Currently, if a bank collapses, we will be able to pay out 92.7 percent of the depositors a maximum of K3 million. The amount is subject to be revised upwards each year after review depending on the economic condition,” she said.
She however said the only challenge in the re-imbursement would be unavailability of data of each customer.
“At the moment we have a project called single customer view through which we are trying to collect data of bank customers. The banks have the data but it’s not in the format that we need it. So that would be a challenge for us to pay out today,” Mwasigala elaborated.
President of Association of Business Journalists, Arthur Chokhotho, in an interview said financial matters are often complex and difficult for the average person to grasp which journalist relay in simpler terms.
He said: “As Malawi intensifies efforts on financial literacy and digital inclusion, the role of the media—particularly business journalists—has never been more critical.
“We are uniquely positioned to bridge the knowledge gap between financial institutions and the general public.
Chokhotho further noted that while many institutions may have the data and expertise, they may lack the communication strategies to relay that information in a relatable, accessible way.
