The Bankers Association of Zimbabwe (BAZ) says at least US$12,5 million is required to recapitalise the countryâ€™s Deposit Protection Board to enable the institution to play its role of paying depositors in the event of a bank failure.
The countryâ€™s Deposit Protection Board, which is currently undercapitalised, has been struggling to meet its obligations, a situation which leaves Zimbabwean depositors with no protection at all.
BAZ President, Mr John Mushayavanhu stressed the urgent need for the recapitalisation of the Deposit Protection Board to restore depositorsâ€™ confidence, adding that at least US$12,5 million should be extended to the institution by treasury.
As part of BAZ recommendations, the US$12,5 million capital injection might be used to invest locally and internationally to generate income for the board to ensure that it has the capacity to pay depositors in case of a bank collapse.
The Deposit Protection Board was formed as a result of the imprudent banking practices by the local financial institutions over the past few years in order to protect depositors.