By Zachary Gava
Harare, (New Ziana) -The Zimbabwe Parliament is committed to strengthening the financial sector through amendments to the Deposit Protection Corporation Act, with legislators saying the proposed reforms will enhance depositor confidence, safeguard savings and reinforce macroeconomic stability.
Speaking during a capacity-building workshop on the Deposit Protection Corporation Amendment Bill in Harare on Tuesday, chairperson of the Parliamentary Portfolio Committee on Budget, Finance and Investment Promotion, Lincoln Dhliwayo, said a stable banking sector is fundamental to the economic development and growth of the country.
He said macroeconomic stability remains one of the key national development priorities, adding that a sound and trusted banking system cannot exist without strong depositor confidence.
“The banking sector’s stability cannot be achieved without enhanced depositor confidence. This workshop marks an important step in strengthening Zimbabwe’s financial sector regulatory framework while ensuring greater protection for depositors, who are the lifeblood of our banking system,” he said.
Dhliwayo noted that Parliament has a constitutional responsibility to enact laws that promote peace, order and good governance, describing the proposed amendments as a fulfilment of that mandate by addressing long-standing legal gaps in the country’s financial sector.
He acknowledged that the Deposit Protection Corporation had previously invited the Portfolio Committee to a drafting workshop in Nyanga in 2024, but members were unable to attend because of competing Parliamentary commitments.
Dhliwayo expressed appreciation for the invitation and assured stakeholders that the Committee has now prioritized the legislative process to ensure members are well-equipped to scrutinize the Bill and contribute meaningfully to its refinement.
According to Dhiwayo, the proposed legislation seeks to strengthen the Deposit Protection Corporation while introducing significant reforms to the way financial institution failures are managed.
He said one of the most notable provisions of the Bill is the establishment of a dedicated insolvency regime specifically designed for banking institutions, recognizing that the collapse of banks presents unique systemic risks that cannot be adequately addressed under the country’s general insolvency laws.
“The Bill introduces fundamental reforms that will transform the manner in which we handle the insolvency of banking institutions. I am particularly interested in understanding how this specialized insolvency regime will operate in practice,” he said.
Dhliwayo said the Committee has consistently championed stronger protection for depositors, noting that ordinary Zimbabweans regularly raise concerns about the safety of their savings should a financial institution collapse.
“Our vision has always been to protect depositors who entrust their hard-earned savings to banking institutions. Constituents frequently ask what happens to their money if a bank fails, and this legislation seeks to provide greater assurance and confidence,” he said.
The Deposit Protection Corporation Amendment Bill is expected to modernize the country’s deposit protection framework, strengthen financial sector resilience and improve mechanisms for resolving distressed banking institutions while protecting depositors and maintaining confidence in the financial system.
New Ziana
