By Prior Beharry
MINISTER of Finance Colm Imbert announces an increase in deposit insurance coverage.
Effective October 1, 2024, the coverage limit will rise from $125,000 to $200,000, following the signing of new legal orders on August 28, 2024.
This change, documented in Legal Notices Nos. 159 and 160 of 2024, aligns with international best practices and the recommendations of the International Monetary Fund (IMF), Imbert said in a press release on Wednesday.
He said, “This adjustment is considered to be in the public interest and is intended to provide a further level of protection for persons who deposit their savings in financial institutions.”
He said the adjustment aims to enhance depositor protection, compensating for inflationary pressures and bringing coverage levels in line with GDP per capita ratios.
Imbert said the revised coverage will boost the protection of deposit accounts from 94% to 96% and increase the insured deposit value from 23% to 33% across licensed financial institutions.
Additionally, the Central Bank (Deposit Insurance) Order, 2024, will gradually increase the premium levied on financial institutions. Starting October 1, 2024, the premium will rise from 0.2% to 0.25%, and then to 0.3% by October 1, 2025. This phased approach ensures that financial institutions have ample time to adjust, the finance minister said.
