Dear SAIFM members,
We’re pleased to share important news concerning the recent establishment of the Corporation for Deposit Insurance (CODI) in South Africa. CODI, operational since 1 April 2024, the Deposit Insurance Scheme represents a significant step in enhancing the stability of our financial sector.
CODI is a subsidiary of the South African Reserve Bank (SARB) and has been created to safeguard qualifying bank depositors in the event of a bank failure. It manages the Deposit Insurance Fund (DIF), providing depositors with access to up to R100,000 of their deposits, funded by, among other options, monthly premiums and loan contributions by member banks. This measure aims to bolster public confidence in our banking system and reduce reliance on taxpayer funds in the event of a bank failure.
Under its mandate, CODI operates in alignment with various resolution strategies as determined by the SARB, thereby contributing to the overall financial stability of the country. Moreover, CODI’s establishment underscores the commitment to maintaining and enhancing financial stability in South Africa.
For further information, please click here.
