Economy
97 Percent of Ethiopian Bank Depositors Hold Under 100,000 Birr
The Reporter (Amharic) · 2 weeks ago · Read the Full Story on The Reporter (Amharic)
AI SUMMARY
The Ethiopian Deposit Insurance Fund revealed that 97 percent of bank depositors in the country hold account balances under 100,000 Birr, justifying its coverage limit.
- Data from banks shows that 97% of depositors in Ethiopia have account balances under 100,000 Birr.
- The Ethiopian Deposit Insurance Fund (EDIF) provides insurance coverage of up to 100,000 Birr per depositor in the event of an institution's insolvency or license revocation.
- A total of 97 licensed financial institutions, including 31 commercial banks and 66 microfinance institutions, are mandatory members of the fund.
- The Development Bank of Ethiopia and savings and credit cooperatives are not members of the fund.
- Member institutions contribute an annual premium equal to 0.3% of their average annual total deposits.
- During the 2018 fiscal year, the fund collected 9.35 billion Birr in premiums, bringing its three-year cumulative premium collection to 23.42 billion Birr.
- The fund's investment portfolio reached 26.81 billion Birr by the end of the 2018 fiscal year, with 24.44 billion Birr invested in government treasury bills.
- For the 2019 fiscal year, the fund plans to collect 18.14 billion Birr in revenue, aiming to increase its total financial capacity to 45.57 billion Birr.
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