By Issah Mohammed, GNA
Accra, May 18, GNA – The Board of the Ghana Deposit Protection Corporation (GDPC) has begun reviewing compensation limits payable to depositors of failed banks and specialised deposit-taking institutions (SDIs).
The review follows the Ghana Deposit Protection (Amendment) Act, 2025, which mandates the Board to review insured deposit coverage limits every two years to ensure compensation remained responsive to economic conditions and depositor protection objectives.
Mr Galahad Alex Andoh, Chief Executive Officer of the GDPC, announced this at a media workshop in Accra, where he underscored the need for greater public awareness of the benefits and limitations of the deposit insurance scheme.
Currently, the maximum compensation payable to a depositor of a failed bank is GHS6,250, while that of an SDI stands at GHS1,250.
Any amount exceeding the insured limit would be reimbursed by the Receiver of the failed institution.
Mr Ebenezer Holyson Kpentey, Public Relations Manager of the GDPC, explained that reimbursement was determined by aggregating all deposit accounts held by an insured depositor and deducting any overdue liabilities owed to the institution.
“The Corporation shall pay insured depositors within 30 days after the failure of a Bank or SDI. Payment will start after 6 days of the failure,” he said.
The Ghana Deposit Protection Act established the GDPC as a statutory body to manage the national deposit protection scheme and created the Deposit Protection Fund to reimburse depositors in the event of bank or SDI failures.
The scheme seeks to protect small depositors against losses arising from insured events and to support a stable and efficient financial system in Ghana.
Launched on September 30, 2019, the scheme received initial seed funding from the Government of Ghana and the Bank of Ghana, with technical and financial support from Kreditanstalt für Wiederaufbau (KfW), a German state-owned development bank.
The GDPC operates as an independent public institution governed by a seven-member Board, including the Chief Executive Officer, with representation from the Chartered Institute of Bankers, Association of Ghana Industries, Ghana Bar Association, Institute of Chartered Accountants Ghana and the Ministry of Finance.
The Corporation is also a member of the International Association of Deposit Insurers, which promotes standards and best practices in deposit protection globally.
GNA
Edited by Kenneth Sackey
Reporter: Issah Mohammed