Karachi, December 1, 2023 – The State Bank of Pakistan (SBP) announced on Friday that a remarkable 98% of depositors in the country are fully protected, ensuring their financial security even in the unlikely event of a bank’s failure.
The assurance was made public as part of the Deposit Protection Corporation’s (DPC) third Annual Report for the year 2022-23, aimed at enhancing awareness among bank depositors and the general public regarding the protection of deposits in member banks.
The Annual Report underscores the DPC’s unwavering commitment to safeguarding depositors’ funds, reinforcing financial stability, and continually expanding the horizon of deposit protection. It provides comprehensive insights into the DPC’s performance throughout the year, including a disclosure of its financial performance. The report also outlines the organization’s future plans and strategic initiatives, highlighting its dedication to strengthening deposit protection in the country.
One of the key revelations in the report is the extensive coverage and scope of deposit protection provided by the DPC. Statistics and graphical presentations in the report depict a clear picture of the Corporation’s safety net, revealing that the DPC extends deposit protection to more than 98% of the total 73 million depositors in scheduled banks across Pakistan.
The report places a significant emphasis on public awareness, adopting the tagline “Know the deposit protection.” In a bid to enhance understanding, frequently asked questions regarding deposit protection have been illustrated pictorially in this segment. This initiative is crucial in empowering depositors with knowledge about their rights and the robust safety mechanisms in place to protect their financial interests.
Established in 2018 under the Deposit Protection Corporation Act, 2016, the DPC operates with a mandate to compensate bank depositors in the unlikely event of a bank failure. As per the Act, all scheduled banks in Pakistan are members of the DPC, reinforcing the organization’s reach and ensuring a broad base of coverage for depositors across the banking sector.
The release of the Annual Report comes at a time when public confidence in financial institutions is crucial. The transparency and commitment demonstrated by the DPC in safeguarding depositors’ interests contribute significantly to fostering trust and stability within the banking sector.
As the DPC continues to evolve and expand its initiatives, depositors can rest assured that their financial well-being remains a top priority, backed by a robust and comprehensive deposit protection framework. The Annual Report serves as a testament to the DPC’s proactive approach in ensuring the resilience and security of Pakistan’s banking system.
