|
- What is Deposit Protection Fund Board (DPFB)?
DPFB is a corporation established under Section 36 of the Banking Act, Chapter
488 of the Laws of Kenya as a deposit insurance scheme to provide cover for
depositors and act as a liquidator of failed member institutions.
- What is the role of DPFB in the financial system?
It is cover that safeguards depositors against loses they would otherwise
incur if a bank or deposit taking institution closes.
- What is a Deposit Insurance Scheme?
It is a cover that safeguards depositors against loses they would otherwise
incur if a bank or deposit taking institution closes its operations. The scheme
was established in Kenya in 1985.
- Who manages DPFB?
DPFB is a public institution managed by a Board comprising the Governor of
the Central Bank of Kenya as the Chairman, the Permanent Secretary to the
Treasury and five other members who represent the interests of the member
institutions.
- What is a member institution?
A commercial bank, non-bank financial institution, a building society, or
a deposit taking microfinance institution licensed under the Banking Act.
Currently, member institutions comprise of forty three (43) commercial banks,
two (2) non bank financial institutions and one (1) deposit taking microfinance
institution.
- How does DPFB protect a depositor of a member institution?
A depositor is guaranteed payment of a maximum of Kshs 100,000.00 in case
of failure of a member institution. Currently, the guaranteed payment covers
over 90% of the total number of depositor's accounts in Kenya.
- How does a depositor recover deposits in excess of the insured amount
of Kshs 100,000.00?
This is paid as liquidation dividend after the liquidator has recovered sufficient
funds from the sale of the institution’s assets and recovery of debts.
- Who pays the insurance premium?
The member institution pays the premium to the DPFB at no cost to the depositor.
The premiums received by DPFB constitute the Fund.
- Which deposits are insured by DPFB?
These are deposits in current accounts, savings accounts and time/fixed deposit
accounts.
- I am a non resident of Kenya, are my deposits held with member institutions
in Kenya insured?
Yes, your place of residence or nationality does not matter.
- What if I have several accounts in the same institution?
All accounts of each depositor in an institution are consolidated and paid
up to the maximum insured sum of Kshs 100,000.00
- In the event that a joint account exists in addition to individually
owned account in the same insured institution, is each account separately
insured?
A joint account is considered as being distinct from individually owned accounts
and therefore insured separately.
- Are accounts held in trust, executor, guardian or custodian insured separately
from an individual's account?
Yes, these are treated as distinct from individually owned accounts and therefore
insured separately.
- Are creditors of institutions insured?
No. However, they are entitled to participate in the payment of liquidation
dividends.
- Is an account held by a limited liability company or a partnership insured separately from the individual accounts of shareholders or partners of those entities?
Yes, these are different entities and they are treated separately for purposes of insurance.
- What happens if my bank is 'bought out' or merged with another member bank?
The deposit insurance coverage is retained in the name of the new institution.
- What happens when a member institution fails?
DPFB publishes notices informing the public of the institution's failure and advises depositors on the claim procedures. Depositors are required to fill and lodge claim forms with DPFB in order to facilitate prompt payment of the insured deposit up to a maximum of Kshs 100,000.00.
- How many institutions are currently under liquidation by DPFB?
Twenty (20) institutions are currently under liquidation.
|
|