The Parliamentary Portfolio Committee on Budget, Finance and Investment Promotion says Bulawayo residents have broadly embraced the proposed Deposit Protection Corporation (DPC) Amendment Bill, describing it as a timely measure to strengthen depositor protection and restore confidence in Zimbabwe’s banking sector.
The committee, chaired by Chipinge East legislator, Lincoln Dhliwayo, received overwhelming support for the Bill during a public consultation held at Stanley Hall, on Tuesday, as residents called for stronger legal safeguards against losses arising from bank failures.
Speaking after the hearing, Dhliwayo said the proposed legislation seeks to address long-standing weaknesses in the financial sector by strengthening the Deposit Protection Corporation’s mandate.
“The Bill’s primary objective is to strengthen the Deposit Protection Corporation and, by extension, protect depositors. It seeks to introduce fundamental reforms that will transform the manner in which we deal with the insolvency of banking institutions in Zimbabwe,” he said.
Enthumbane-Njube legislator and committee member, Prince Dube said the public had welcomed reforms aimed at shielding depositors from losing their savings when banks collapse.
“The Deposit Protection Corporation is proposing to protect depositors when a banking institution collapses. We have seen this happen before, where people lost years of savings after banks closed down. This legislation seeks to ensure that depositors are protected from such losses in future,” he said.
Residents who addressed the committee said stronger depositor protection would help rebuild confidence in the banking sector, although they urged lawmakers to ensure the legislation adequately addresses challenges experienced by bank customers.
Local resident, Thabani Ncube said many Zimbabweans were reluctant to bank their money because of difficulties in accessing deposits.
“What is happening at banks is discouraging people from banking their money. You deposit money, but when you want to access it, the bank starts giving you excuses. Even accessing your salary can be a struggle,” she said.
Another participant urged Parliament to ensure the Bill provides fair compensation to depositors in the event of a bank collapse, arguing that savings should retain their value over time.
The DPC Amendment Bill is part of ongoing efforts to strengthen Zimbabwe’s financial safety net by enhancing depositor protection and improving the framework for resolving failed banking institutions. It is currently undergoing nationwide public consultations before being tabled in Parliament for debate.
