Insurance systems indispensable for maintaining financial stability – GDPC

By Stanley Senya

Accra, July 24, GNA – Mrs. Pearl Esua-Mensah, Chief Executive Officer of Ghana Deposit Protection Corporation (GDPC), says deposit insurance systems are indispensable for maintaining financial stability in the light of recent global financial challenges and bank failures.

She said deposit insurance systems in today’s global financial environment was important to the growth and development of the country.

Mrs Esua-Mensah was speaking at the International Association of Deposit Insurers (IADI), Africa Regional Committee (ARC) Workshop held in Accra.

The event, hosted by GDPC was on the theme: “The Increasing Role of Deposit Insurers in Bank Resolution.”

The workshop brought together financial regulators and deposit insurance experts from across Africa, enabling in-depth discussions and knowledge-sharing.

Expert panels and interactive workshops delved into the complexities of effective bank resolutions, while networking opportunities encouraged collaboration among industry leaders, policymakers, and professionals.

“The workshop served as a vital platform for exchanging insights, experiences, and best practices crucial to effective bank resolutions,” she said.

Mrs Esua-Mensah said the workshop’s educational aspect was aimed at deepening participants’ understanding of safeguarding depositor funds and ensuring the integrity of financial institutions.

“Together, we aim to leverage collective knowledge to tackle the challenges and opportunities ahead,” she said.

Dr. Maxwell Opoku-Afari, First Deputy Governor of the Bank of Ghana, said the Bank had taken proactive measures to enhance regulatory frameworks to ensure robust financial oversight.

He said the inclusion of deposit protection in curricula for tertiary educational institutions not only educated future finance professionals but also strengthened public awareness and confidence in the banking sector’s resilience.

Dr. Opoku-Afari said there were ongoing collaboration with international bodies to align Ghana’s deposit insurance practices with global standards, further bolstering the country’s financial resilience.

Madam Eva Hüpkes, Secretary -General of the International Association of Deposit Insurers, said deposit insurers played a crucial role in maintaining global financial stability, especially in light of recent banking challenges.

She said it was important for deposit insurers to adhere to rigorous principles in safeguarding deposits, highlighting their pivotal role in enhancing the resilience of financial systems and fostering public confidence.

Dr. Alex Ampaabeng, Deputy Minister for Finance, said, “the government has made significant strides in strengthening the regulation and supervision of banks and special deposit-taking institutions.”

“We have also enhanced the soundness of the insurance, pension, and capital market sectors,” he added.

Throughout the workshop, participants gained valuable insights into practical bank resolution strategies.

GDPC aimed to equip attendees with the necessary tools and knowledge to effectively protect depositor funds and strengthen the resilience of financial institutions.
GNA