Ghana passes Depositors Protection Act

The Parliament in Ghana passed the Depositors Protection Bill, 2015 to protect the savings of depositors and also promote confidence in the financial system. The bill became necessary in the wake of the microfinance financial crisis involving DKM Microfinance Company and four other Savings and Loans Company in the Brong Ahafo Region

The new Act requires that a scheme be set up "to protect small depositors from loss incurred as a result of the occurrence of an insured event and to support the development of a safe, sound, efficient and stable market-based financial system in Ghana."

Per the new law, "the Corporation shall not pay to an insured depositor, an amount that is more than the maximum insured amount of GH?5,000, in case of a depositor of a bank; and GH?1,000 in case of a depositor of a specialized deposit-taking institution."

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