Tag: Corporation for Deposit Insurance (CODI)
Deposit insurance could disrupt SA banking dramatically
The Corporation for Deposit Insurance (CODI) finally aligns South Africa with the rest of the G20. By guaranteeing cash deposits of up to R100,000 per qualifying depositor in the event of a bank collapse, this innovative new scheme has the potential to change South Africa’s banking landscape, which is currently dominated by the Big Five (FNB, Nedbank, Standard, Absa and Capitec).
On the dangers of bank deposit insurance
Bank deposit insurance exacerbates the very crises it is assumed to alleviate. It inevitably promotes its own expansion and perforce brings calls for yet heavier regulation.
