Addis Ababa – Ethiopia’s Deposit Insurance Fund (EDIF) has collected 5.2 billion BIRRs from member financial institutions over the past nine months, showing an increase of 11.1% compared to the same period last year.
At a press conference he held today, Desalegn said the fund is offering up to 100,000 BIRR insurance coverage per member institution per depositor.
“Around 97% of bank depositors are currently covered by the deposit insurance scheme,” the CEO said, adding that 31 banks and 55 microfinance institutions are registered as members.
Of the total premiums, 51.3% or 2.67 billion BIRRs were collected from private banks, and 47.5% or 2.47 billion people were collected from commercial banks in Ethiopia, he said.
He added that the remaining 1.2 percent or 59.49 million was collected from microfinance institutions.
He said EDIF’s 12.1 billion BIRR investment portfolio stands at over 92%, generating 689.45 million BIRR profits over the past nine months.
“Our mission is to protect depositors, assess and collect premiums, contribute to the stability of the financial system by investing and managing Edif resources, and reimbursing insured depositors,” he said.
We are committed to serving as a trusted and trustworthy deposit insurance fund, he added.
EDIF Operations Director Merga Wakweya emphasized that the role of the fund is to ensure the stability of the financial system by protecting depositors in the event of a failure of a bank or microfinance institution.
Accountable to the National Bank of Ethiopia (NBE), EDIF will refund insured depositors in the event of financial institution failure and invest in secure government securities.
The initiative illustrates the key steps to strengthen public trust and stability within the Ethiopia financial sector and collaborate with international best practices in the financial security net.
EDIF aims to protect depositors and reduce risks to bank operations, contributing to a more resilient financial system to sustain economic growth.
