The Deposit Insurance Corporation is urging Malawians to keep their money in licensed banks, emphasising that deposits are protected even if a bank fails.
Addressing journalists in Lilongwe, DIC Operations Manager Lowina Mwasigala said the scheme was designed to protect savers and prevent panic in the financial system.
“The scheme was designed to protect depositors in all commercial banks licensed and regulated by the Registrar of Financial Institutions,” said Mwasigala.
She said the system is intended to build trust in the banking sector and ensure customers are compensated if a bank collapses. The corporation said it has so far raised K20 billion in its insurance fund, against a target of K174 billion.
However, financial inclusion remains low. Out of more than 20 million people in Malawi, only about 2.7 million have bank accounts.
Meanwhile, the Association of Business Journalists says more needs to be done to shift public behaviour towards formal banking.
Deputy National Coordinator Alex Banda said awareness of deposit insurance must be strengthened.
“Malawians must be encouraged to trust regulated financial institutions in order to protect themselves from risks such as theft, loss and the dangers of keeping large sums of cash outside the banking system,” he said.
He added that government and stakeholders must step up public education, warning that continued reliance on cash is holding back financial inclusion and wider economic participation.
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