The South African Reserve Bank published the Corporation for Deposit Insurance’s (CODI) Annual Report 2024/25 and audited financial statements for the year ended 31 March 2025, summarising CODI’s first full year of operating South Africa’s Deposit Insurance Scheme after becoming operational on 1 April 2024. The scheme provides explicit protection of covered deposits up to ZAR 100,000 per depositor per registered bank. By 31 March 2025 the Deposit Insurance Fund (DIF) stood at ZAR 20 billion, funded largely through member banks’ interest-bearing liquidity-tier loans and monthly premiums. The liquidity tier was set at 3% of covered deposits and premiums are charged at an annual rate of 0.2% of covered deposits, alongside an annual levy of 0.015% to fund CODI’s operations. CODI had 33 compulsory member banks with total covered deposits of ZAR 636,506 million and reported total assets of ZAR 20.16 billion, a liquidity-tier liability of ZAR 18.78 billion and total comprehensive income of ZAR 1.38 billion. Operational work included completing phase 1 of CODI’s IT solution to receive aggregated depositor balances and automate contribution calculations, a World Bank-facilitated resolution simulation, and public awareness initiatives including training for more than 1,500 customer-facing bank staff; the Board also reduced the target DIF size from 4% to 3% of covered deposits and CODI requested Financial Sector Regulation Act amendments to strengthen its on-site examination powers and its ability to process depositors’ personal information. Phase 2 of the CODI IT system, which will collect single customer view calculations and detailed depositor submissions, is scheduled for implementation on 1 October 2025. CODI’s 2025–30 strategy indicates plans over the next financial year to optimise DIF investments including appointing external fund managers, run further resolution simulations and testing of payout channels, assess the adequacy of the coverage limit and scope, conduct a feasibility study on including cooperative financial institutions as members, and assess compliance with the International Association of Deposit Insurers Core Principles with a remedial plan where needed.
South African Reserve Bank 2025-06-30
South African Reserve Bank publishes CODI first annual report showing ZAR 20 billion Deposit Insurance Fund and ZAR 100,000 coverage limit
The South African Reserve Bank released the Corporation for Deposit Insurance’s (CODI) Annual Report 2024/25, detailing its first year operating the Deposit Insurance Scheme, protecting deposits up to ZAR 100,000 per depositor. By 31 March 2025, the Deposit Insurance Fund reached ZAR 20 billion, primarily funded by member banks' loans and premiums. CODI plans to enhance IT systems, optimize fund investments, and assess coverage adequacy, while seeking legislative amendments to bolster operational capabilities.