SBP launches Deposit Protection Corporation

SBP launches Deposit Protection Corporation

ISLAMABAD: The State Bank of Pakistan launched the Deposit Protection Corporation to provide protection for the depositors in the event of a bank failure.

The DPC is a wholly-owned subsidiary of SBP and is a deposit protection mechanism for depositors.

The protected amount has been determined to be 250,000 rupee per depositor per bank.

SBP said in a press release that all commercial banks are members of this scheme and will be paying the required premium.

The establishment of DPC was envisaged as one of the important objectives in SBP’s strategic plan 2016-2020 under the strategic goal titled “strengthen the financial system stability regime”. The idea of introducing deposit insurance was first introduced through the IMF facility that Pakistan signed in November 2008. It has been a work in progress ever since.

 APP