Deposit Insurance Act amended
Published:Saturday | January 29, 2011 | 12:00 AM
The Senate yesterday approved amendments to the Deposit Insurance Act. Legislators in the Upper House gave the nod to the bill with five amendments.
A critical aspect of the bill is the preservation of a depositor's entitlement in circumstances where a depositor has money in accounts with separate financial institutions that have merged.
The Deposit Insurance Corporation was established in 1989 to administer the deposit insurance scheme. Its development followed the financial sector meltdown of the 1990s.
The bill also empowers the minister of finance to amend the monetary penalties set out in the act by order subject to affirmative resolution.