ABSTRACT
An explicit depositor insurance scheme (EDIS) is central to the promotion of financial inclusion as it protects mainly small and unsophisticated depositors from losing their savings in the event of a bank failure and ensures that they are informed about safe methods of storing their money by regularly conducting public awareness activities. Deposit insurance reduces the likelihood of panic withdrawals and bank runs when a bank fails, thereby enhancing stability and confidence in the financial sector. Depositors will know how and when reimbursement of their deposits will be made in the event of a bank failure. The main goal of financial inclusion is to improve the range, quality and availability of financial services and products to the unserved or underserved and financially excluded. Deposit insurance policies and procedures as expressed in the International Association of Deposit Insurers (IADI) Core Principles for Effective Deposit Insurance Systems and individual deposit insurer mandates affect financial inclusion, primarily through policies and practices governing membership, coverage, funding and public awareness. Zimbabwe is a developing country in southern Africa that is characterised by incredible human and economic hardships, including bank failures, low-capacity utilisation, nationwide lockdowns attributable to the devastating effects of the ongoing global coronavirus disease, the Covid-19 pandemic and inflationary pressures. This chapter examines the measures taken by the Deposit Protection Corporation of Zimbabwe to protect bank depositors and promote financial inclusion to pronounce on whether it adequately achieves this goal.
