banksss.jpgThe Bankers Association of Zimbabwe (BAZ) says at least US$12,5 million is required to recapitalise the country’s Deposit Protection Board to enable the institution to play its role of paying depositors in the event of a bank failure.

The country’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 depositors’ 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.