Josef Sheehama | Feb 8, 2024 | 0
Safety net for bank depositors demonstrates resilience, fund records increase amid COVID-19
The Namibia Deposit Guarantee Authority (NDGA) demonstrated resilience by operating seamlessly in an economic and market environment beset by the COVID-19 pandemic, an executive said Thursday.
The second Annual Report for the fiscal year ended 31 December 2021 demonstrated a 3.8% year-on-year increase in the market value of the Deposit Guarantee Fund to around N$10.260 million, NDGA Board Chairperson, Ebson Uanguta said at an event in Windhoek.
According to Uanguta during the fiscal year under review, the Fund’s value increased primarily due to N$5.079 million in premiums paid by member institutions and a total annual interest income of N$278,496
“The Namibia Deposit Guarantee Act, 2018 (No. 16 of 2018) established the NDGA with the primary goal of administering the Deposit Guarantee Scheme. The Scheme aims to protect depositors from the loss of their deposits by compensating them in the unlikely event of a commercial bank failure. This ultimately benefits consumer protection while also improving financial stability,” he explained.
Uanguta meanwhile said going forward, the NDGA will continue to ensure prudent management of the Deposit Guarantee Fund, for the institution to effectively carry out its mandate.
“Further, the institution will continue to strengthen relations with key stakeholders and the public at large to forge the vital trust of depositors in Namibia’s financial system,” he said.
Currently, all Namibian banking institutions and branches of foreign banks and building societies are required to be members of the Deposit Guarantee Scheme and pay annual premiums to the Scheme.