The Deposit Protection Corporation (DPC) has initiated a review of Zimbabwe’s deposit insurance coverage levels, paving way for higher protection thresholds for bank and microfinance institution depositors.
The review, expected to be complete this year, comes amid concerns that stagnant coverage limits can weaken depositor confidence and leave a growing portion of savings outside the protection framework as deposit balances increase over time.
In its 2025 annual report, DPC chief executive Hopewell Zinyau said actuarial consultants had been appointed to assess the adequacy of the current coverage levels and determine the implications of increasing them.
“The corporation engaged actuarial consultants to review the cover level, and work has commenced to determine the impact of an upward review of the cover level. The review process is expected to be completed in preparation for an upward revision of the coverage levels in the 2026 financial year,” Zinyau said.
Coverage thresholds remained unchanged throughout 2025.
Depositors at commercial banks continued to be protected up to the Zimbabwe Gold (ZWG) equivalent of US$1 000 per deposit class, while the protection limit for United States dollar-denominated deposits remained fixed at US$1 000.
For deposit-taking microfinance institutions, the protection ceiling stayed at the ZWG equivalent of US$500 per deposit class.
Despite the unchanged limits, the corporation said the current protection levels continue to cover the vast majority of deposit accounts.
According to Zinyau, the existing framework fully protects 99,4 percent of ZWG-denominated accounts and 96,3 percent of US dollar-denominated accounts held with commercial banks.
Coverage within deposit-taking microfinance institutions remains even higher, with 99,93 percent of ZWG accounts and 99,95 percent of US dollar accounts fully insured under the current scheme.
The DPC’s income continues to be driven primarily by premium collections from participating financial institutions.
Premium income accounted for 63 percent of total revenue during the year, while investment income contributed 33 percent and rental income represented about one percent of earnings.
Premium contribution rates for both local currency and foreign currency deposits remained unchanged at 0,3 percent of annual average deposits eligible for premium assessment.
Meanwhile, the corporation reported significant growth in the Deposit Protection Fund during 2025.
The fund expanded by 89 percent, rising from US$15,2 million at the end of 2024 to US$28,8 million by December 2025. The balance exceeded the corporation’s full-year target of US$24,9 million.
According to Zinyau, the strong growth reflected robust premium collections and favourable investment returns.
“The surge demonstrates accelerated fund accumulation and significantly enhances the Corporation’s loss-absorption capacity,” he said.
The corporation also recorded a net surplus of US$13,4 million during the year, almost double the amount initially budgeted.