Deposit guarantee scheme

active

As part of the development cooperation programme Sustainable Economic Development, the project will contribute to improving and securing access to innovative and demand-oriented microfinance services and to employment in micro, small and medium-sized enterprises (MSMEs) (development cooperation programme objective). After successful implementation of the project, a functional, sustainable deposit guarantee system will be established that is accepted by financial institutions and known to the public, which will make a significant contribution to improving the protection and mobilisation of local financial resources (FC module objective). The target group of the project are small savers and micro-enterprises, who will be enabled to invest their savings safely in the formal financial sector through the project. Also indirectly affected are (i) the Ghanaian financial sector, which will be enabled to obtain improved, less risky refinancing through increased, longer-term customer deposits, and (ii) economic actors, who should generally benefit from increased confidence and in particular from the availability of longer-term loans. In the first phase I, an IDA loan of EUR 3.5 million was made available for the initial capitalization of the deposit protection fund. As part of a follow-up phase, a further IDA loan of EUR 9.5 million is now being made available to capitalize the deposit protection fund. The accompanying measure for phase I of the project essentially serves the institutional development of the newly established deposit protection agency (Ghana Deposit Protection Corporation, GDPC). Grant funds of EUR 0.5 million were made available for this purpose. A further grant of EUR 0.5 million will be made available for the follow-up phase (phase II). This is intended to strengthen the Ghanaian central bank (Bank of Ghana, BoG), particularly in the areas of banking supervision and regulation.