Market value of Deposit Guarantee Authority increase to N$23 million by end of December 2023
By Michel Haoses.
The Namibia Deposit Guarantee Authority (NDGA) released its fourth Annual report for the year ended December 2023 marking the first of three years of implementation of the Strategic Plan (2023-2025)
The Namibia Guarantee Deposit Fund was established to protect depositors from loss of their deposits by compensating them in the unlikely event of a commercial bank failure, enhancing consumer protection while also improving financial stability.
The NDGA’s assets remained safe and secured as invested, in line with the approved investment policy and guidelines recording a growth acceleration fuelled by the premiums received from member institutions, according to the report.
Member institution’s annual premium received totaled N$5,167,016 while the market value of the Fund closed off the year at N$23,050,504 outperforming its benchmark by 66.8 basis points during the reporting year.
The scheme currently adopts a guaranteed coverage limit of N$25,000 covering 90% of current depositors ensuring that they have access to funds within a specified period with.
Additionally, the fund also provides partial coverage for depositors with deposit values above the coverage limit (N$25,000) currently standing at 8.8% while 91.2% of Namibians are fully covered.
NDGA Board Chairperson and Deputy Governor Ebson Uanguta who delivered the keynote address said “I maintain a view that the establishment of the Namibia Deposit Guarantee Authority fours ago, remains a significant milestone in our effort to modernize our financial system through the provision of the necessary safety nets”.
He further commended the team for ensuring the smooth operation of the institution and congratulated the NDGA staff and management on the publication of the fourth annual report and delivering it to the Minister of Finance on 28 March 2024 in line with the provision of the Governing Act.
Finally, member institutions include Atlantico, Bank Bic, Bank Windhoek, FNB, Letshego Bank, Nedbank, Standard Bank, and Trustco Bank Namibia.
