Moneyweb
South African bank depositors will have legal protection from next year when the government's first deposit insurance body comes into existence in 2024.
The SA Reserve Bank has established the first deposit insurance body, the Corporation for Deposit Insurance, or CODI, "to protect bank depositors" and to bring "further confidence" to the financial sector.
CODI became a legal entity in March, as set out in the commencement schedule published by Finance Minister
Enoch Godongwana and which outlines the dates at which the resolution and deposit insurance provisions in the Financial Sector Laws Amendment Act 23 of 2021 come into operation.
"CODI’s primary responsibilities are establishing, maintaining and administering a deposit insurance fund to protect the banks’ covered depositors and inform the depositors of its benefits and limitations should a bank be placed into resolution," the SARB statement noted.
The Reserve Bank said secondary legislation will also be developed which specifies the cover limit for depositors and this will be passed through a Parliamentary process and published by National Treasury in 2023.
"The legislation is required for CODI to become operational in 2024 and provide the necessary protection for depositors," the SARB said.
