IADI REGIONAL WORKSHOP ON

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• IADI REGIONAL WORKSHOP ON
• DIS COVERAGE PUBLIC AWARENESS AUGUST 13TH -
  15TH 2008, ABUJA NIGERIA

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• PUBLIC AWARENESS OF DEPOSIT INSURANCE SYSTEMS
• THE EXPERIENCE OF KENYA
• Presented By M.A.Mohamud - DPFB

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• OUTLINE
• Introduction
• Objectives of DPFB
• Public Awareness
• Experience of Kenya
• Way Forward
• Challenges Limitations
• End

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• INTRODUCTION
• Deposit Protection Fund Board (DPFB) is a
  body corporate established under Section 36 of
  the Banking Act CAP 488 of the Laws of Kenya.

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• INTRODUCTION (Contd.)
• Established in 1985 following the banking crisis
  of the early eighties which caused major losses
  to depositors.
• Found necessary to stem further erosion of
  confidence in the sector.
• Cushion small depositors who were the most
  affected.
• Concept of a contributory scheme of insurance.
• Members of scheme - all licensed deposit taking
  financial institutions.

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• INTRODUCTION (Contd.)
• Insured deposits maximum of Ksh.100,000
  (approx.US1,400) per depositor.
• Operations commenced on 1st September, 1986.
• Initial activities were establishment of
  administrative and operational procedures viz
  laying the foundation, capacity building and
  funding.
• Effective operations started 1989.

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• OBJECTIVES OF DPFB
• Protection of small depositors through pay out of
  insured deposits.
• Enhance public confidence in the financial
  sector.
• Promote Financial Stability.
• Encourage Savings and promote economic growth.
• Bank resolutions and winding up.

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• PUBLIC AWARENESS
• To effectively attain the said objectives,
  Public awareness is a key component that needs to
  be nurtured and employed by the corporation.

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• OBJECTIVES OF PUBLIC AWARENESS
• Public to understand the scheme
• Inform Depositors when failures occur
• Promote confidence in the Banking Sector
• Shows DPFB concern to Depositors

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• TARGET AUDIENCE
• Member Institutions
• All Depositors/ Creditors
• General Public
• Relevant Institutions Organisations

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• EXPERIENCE OF KENYA
• Printing and circulating annual calendars and
  diaries depicting the main themes of DPFB.
• Prepare and publish annual reports.
• Notices to Public on closure of Institutions.
• Running notices in the print media to advise
  depositors of payment of their insured amount and
  Dividends where applicable.

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• WAY FORWARD
• To launch DPFB Standee and Decals for postings in
  our member institutions as part of enhancing
  confidence in the financial sector.
• To launch Flyers and Brochures for distribution
  to the public.
• To arrange for TV/ Radio Interviews.
• Frequently Asked Questions to assist the public
  in accessing/ understanding our services.
• DPFB site currently hosted under Central Bank of
  Kenya website. However, plans are at an advanced
  stage to host an independent website for DPFB.

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• CHALLENGES
• To effectively reach out to all depositors on
  payment of the insured amount.
• Lack of autonomy Though we are currently in the
  process of drafting a new act that will herald
  independence of DPFB.

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• End of Presentation