Africa-Press – Malawi. Deposit Insurance Corporation (DIC) has said its unaudited Deposit Insurance Fund is projected to have grown to about K20 billion in 2025, from K7 billion recorded at the close of 2024.
The fund is built from bank premiums that are invested and used to insure depositors against loss of their insured deposits in the event of a bank failure or closure.
DIC Director General Chitani Chigumula told The Business Times that the corporation has registered positive performance since rolling out operations in 2024, with strong compliance from banks.
“We have not had any problems with them. All the banks are on board and premiums are remitted on time. So we are at 100 percent, with no other issues,” Chigumula said.
He said the corporation expects the fund to reach K20 billion once audits are completed.
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“Currently, we are conducting audits and the official figures will be published with our financial statements in March 2026. However, there has been positive remittance from banks and from investments made through our fund managers. So we project growth to be around K20 billion, pending audited reports,” he said.
According to the corporation, the fund at its current level could cover two smaller banks in the event of a possible collapse.
However, Chigumula said the long-term target is to grow the fund to K66 billion within the first eight to 10 years from rollout.
Currently, only commercial banks operating in Malawi are members of the deposit insurance scheme, but Chigumula said the DIC plans to extend membership to deposit-taking non-bank financial institutions in 2027.
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He said that consultations with microfinance institutions and savings and credit cooperatives are ongoing ahead of the rollout.
“We have been engaging them to explain the expectations and benefits, because at the end of the day they have to pay premiums. For banks, we had been preparing them since 2012 that this was coming,” Chigumula said.
He further said the banking sector remains stable, with risks currently minimal and not requiring serious intervention.
DIC protects eligible deposits of up to K3 million per depositor per bank, covering about 94 percent of the depositor population, up from 92.7 percent.
DIC is a statutory body established under the Deposit Insurance Corporation Act, 2022, mandated to protect depositors against the risk of losing eligible deposits following the failure or closure of a bank.
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