Deposit Protection Corporation protecting 98% of bank deposits
The Deposit Protection Corporation (DPC) is ensuring the
security of over 98 percent of the total 73 million depositors in scheduled
banks across Pakistan, as highlighted in the third annual report for the year
2022-23 released on Friday.
The report revealed that, as of June 30, 2023, 98.9% of
depositors in conventional banking and 98.7% in Islamic banking were eligible
for deposit protection. In terms of value, 52 percent of conventional banking
deposits and 63 percent of Islamic banking deposits were covered in the event
of a bank failure.
State
Bank warns about limit of deposit protection at banks
According to the report, 13% of eligible deposits in
conventional banking and 10% in Islamic banking were fully protected, catering
to depositors with outstanding balances up to Rs.500,000. The report emphasized
the DPC's steadfast commitment to safeguarding depositors' funds, reinforcing
financial stability, and expanding the scope of deposit protection.
Providing insights into its performance, the report
disclosed that the total assets of the corporation experienced significant
growth over the past five years, reaching Rs.100.158 billion as of June 30,
2023. Investments, a major asset, exhibited substantial growth, increasing from
Rs.12.566 billion in 2019 to Rs.100.128 billion in 2023.
Pakistan's
deposit protection scheme aligns with global standards: SBP
Over the five-year period, income from premium contributions
showed a progressive increase, rising from Rs.11.533 billion in 2019 to
Rs.19.005 billion in 2023, indicating an 11% year-on-year increase.
In FY 2023, deposits with DPC's member banks surged to an
unprecedented high of Rs.25.6 trillion by the end of June 2023.
Correspondingly, eligible deposits witnessed a net increase of Rs.1.8 trillion
during the same period, totaling Rs.14 trillion by the end of June 2023.
The report outlined DPC's future plans and strategic
initiatives, emphasizing its dedication to strengthening deposit protection.
Public awareness campaigns with the tagline "Know the deposit
protection" were also highlighted.
Established in 2018 with the mandate to compensate
depositors in the event of a bank failure, as outlined in the Deposit
Protection Corporation Act, 2016, DPC includes all scheduled banks in Pakistan
as its members.
Source: Urdu Point