Depositors’ funds safe, Uanguta assures public

Namibia Deposit Guarantee Authority chairperson Ebson Uanguta has assured the banking public that depositors’ funds held at commercial banks remain safe in the event of a banking failure.

Uanguta made the remarks at the launch of the NDGA’s annual report for 2023, which saw its assets grow to N$23.1 million as at 31 December 2023.

“Depositors should, at all times, have trust and confidence that their hard-earned savings placed with financial institutions are safe and secured and that they can access such funds whenever they want to,” Uanguta said.

Despite the earlier successes of the authority, which has been able to grow its assets, Uanguta noted that it still remained necessary for depositors’ funds to be maintained.

Trust

“It is important that the vital trust in the financial system by depositors is maintained at all times. Studies have shown that consumers are likely to participate in the system where they know that they are protected from abuse and there are effective safety nets in place. This in the end leads to financial inclusion,” he said.

Depositors could count on the assurance of the Authority that their funds would remain guaranteed even in the event of events such as bank failures.

“The Namibia Deposit Guarantee Authority provides that assurance to depositors, that even in the event of a crisis such as bank failure, they will be compensated of their deposits in a timely and transparent manner,” Uanguta said.

Commercial banks were implored not to rest on their laurels, but continually manage depositors’ funds prudently.

“The establishment of deposit insurance schemes is not a substitute for effective regulatory frameworks. In fact, the establishment of these entities go hand-in-hand with a strong and effective regulatory framework or deposit taking institutions,” he said.