The South African Reserve Bank has established South Africa’s first deposit insurance body, the Corporation for Deposit Insurance (CODI) to protect bank depositors and bring confidence to a resilient financial sector.
The recent financial sector crisis sparked by the Silicon Valley Bank collapse due to liquidity risk has compelled authorities to be more stringent and careful with depositors’ money.
CODI’s primary responsibilities are to establish, maintain and administer a deposit insurance fund to protect the bank’s covered depositors and inform the depositors of its benefits and limitations should a bank be placed into resolution.
Deputy Governor of the South African Reserve Bank, Kuben Naidoo says, “Towards the end of March 2023, the Minister of Finance signed the commencement schedule for deposit insurance. From the 1st of April 2024, South African depositors will be protected by what we call the corporation for deposit insurance (CODI). CODI is an entity that is located with the South African Reserve Bank. With CODI, depositors should be able to receive their money in 2 to 3 weeks. This adds to the resilience of the financial service.”
Source: SABC News (sabcnews.com)