Deposit Protection Corporation DPC Scheme Update:
Deposit Protection Corporation (DPC), a wholly owned subsidiary of State Bank of Pakistan (SBP) has launched deposit protection mechanism for banking companies on Friday the 22nd June 2018. Deposit Protection Corporation DPC Scheme.
As envisaged in the Deposit Protection Corporation Act, 2016, the protected amount has been determined to be Rs250,000 per depositor per bank. All commercial banks are members of this scheme and will be paying the required premium, said a SBP statement. Deposit Protection Corporation DPC Scheme.
Read Also: SBP Women Entrepreneurs Refinance Credit Guarantee Scheme Officially Launched
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. Deposit Protection Corporation DPC Scheme.
The financial system faced a severe liquidity crunch in those days, prompting extraordinary steps from the SBP to shore it up. Even though a bank failure did not occur, the experience was enough to put deposit protection onto the policy radar. Deposit Protection Corporation DPC Scheme.
According to SBP:
Importance of Deposit Protection Scheme
Establishment of a formal deposit protection scheme will be beneficial for Pakistan as it will build up sizable funds, through premium payments from banks that can be used to provide immediate liquidity to small depositors in case of a bank failure. Such schemes will not only reduce burden on the exchequer but will also improve the financial stability in the system.
Financial Stability is one of the top priorities of SBP and its effective supervisory regime has ensured that depositors do not lose their money and that public confidence in the system remains strong. The implementation of deposit protection will further strengthen the overall regulatory architecture and safety of deposits.
DPC is a part of the stability of the financial systems, which is of paramount concern for policymakers around the world. Hence, DPC and its related mechanism have been put in place in line with international standard.
Source: Mehran Post
Deposit Protection Corporation (DPC), a wholly owned subsidiary of State Bank of Pakistan (SBP) has launched deposit protection mechanism for banking companies on Friday the 22nd June 2018. Deposit Protection Corporation DPC Scheme.
As envisaged in the Deposit Protection Corporation Act, 2016, the protected amount has been determined to be Rs250,000 per depositor per bank. All commercial banks are members of this scheme and will be paying the required premium, said a SBP statement. Deposit Protection Corporation DPC Scheme.
Read Also: SBP Women Entrepreneurs Refinance Credit Guarantee Scheme Officially Launched
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. Deposit Protection Corporation DPC Scheme.
The financial system faced a severe liquidity crunch in those days, prompting extraordinary steps from the SBP to shore it up. Even though a bank failure did not occur, the experience was enough to put deposit protection onto the policy radar. Deposit Protection Corporation DPC Scheme.
According to SBP:
“The objective of DPC is to compensate the small and financially unsophisticated depositors to the extent of protected deposits in the unlikely event of a bank failure.”The SBP said the stability of their financial systems is of paramount concern for policymakers around the world. The SBP has a comprehensive framework to ensure safety and soundness of the banking system of Pakistan, it added.
Importance of Deposit Protection Scheme
Establishment of a formal deposit protection scheme will be beneficial for Pakistan as it will build up sizable funds, through premium payments from banks that can be used to provide immediate liquidity to small depositors in case of a bank failure. Such schemes will not only reduce burden on the exchequer but will also improve the financial stability in the system.
Financial Stability is one of the top priorities of SBP and its effective supervisory regime has ensured that depositors do not lose their money and that public confidence in the system remains strong. The implementation of deposit protection will further strengthen the overall regulatory architecture and safety of deposits.
DPC is a part of the stability of the financial systems, which is of paramount concern for policymakers around the world. Hence, DPC and its related mechanism have been put in place in line with international standard.
Source: Mehran Post
I think its a great initiative there would lesser fake accounts.
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