Rwanda to establish deposit insurance system

Jun 12, 2013

According to a policy statement from the Ministry of Finance and Planning, the existing banking regulatory framework in Rwanda will be reviewed - as part of a reform programme - to create a deposit insurance system to protect depositors in case of failure by a financial institution.

According to a policy statement from the Ministry of Finance and Planning, the existing banking regulatory framework in Rwanda will be reviewed - as part of a reform programme - to create a deposit insurance system to protect depositors in case of failure by a financial institution.

It will soon be mandatory for commercial banks and other deposit taking finance institutions to make regular contributions to a pool of funds, Rwanda Focus reports.

"The National Bank of Rwanda will review the existing regulatory framework...
to set up a deposit Insurance law and update related regulations and guidance," said Rwanda's Minister of Finance Claver Gatete in the Budget Framework Paper.

According to experts, deposit insurance is a big component of a financial system safety net and promotes stability in a financial sector. It is expected to boost investors' confidence in the Rwandan market and strengthen the country's financial system, thus contributing to economic growth.

More reforms are planned for the Rwandan banking sector in 2013, such as the consolidation of savings and credit cooperative organizations (SACCOs) into a national cooperative bank.ADNFCR-2976-ID-801597773-ADNFCR