On March 22, 2024, the Ethiopian Deposit Insurance Fund (EDIF) conducted an awareness and dialogue conference at the Skylight Hotel, marking a significant step in its journey to bolster the financial system’s stability. The event was graced by Ato Solomon Desta, the Vice Governor of the National Bank of Ethiopia (NBE) and Board Chairman of EDIF, who shed light on the fund’s foundational objectives and operational strides.
Established under the Council of Ministers Regulation No.482/2021, the EDIF has a clear mandate to protect depositors and enhance the resilience of the financial system. Ato Solomon Desta elaborated on the fund’s proactive measures, including the systematic collection of premiums from its member financial institutions, alongside the judicious investment of these funds to fortify its financial backbone.
Dr. Desalegn Ambaw, CEO of EDIF, delved deeper into the operational dynamics of the fund, emphasizing its pivotal role in safeguarding depositors’ interests. He outlined the comprehensive coverage offered by EDIF, spanning various account types such as current or demand checking accounts, savings accounts, time deposits, joint accounts, and trust accounts. Notably, the insurance coverage extends up to Birr 100 thousand for each depositor per financial institution, providing a robust safety net in the event of an institutional failure.
The EDIF’s impact is substantial, with 80 financial institutions, encompassing 31 banks and 49 microfinance institutions, integrated into its framework. By December 2023, these member institutions had collectively contributed Birr 2.8 billion in annual premiums, underscoring the collective commitment to fortifying the financial ecosystem.
The conference underscored the EDIF’s instrumental role in instilling confidence among depositors and maintaining the stability of Ethiopia’s financial system. Through its strategic initiatives in premium collection, resource management, and depositor reimbursement, the EDIF stands as a cornerstone of financial security and system stability in Ethiopia.
