Windhoek:Access Bank Namibia, which recently received its banking authorization from the Bank of Namibia, has joined the Namibia Deposit Guarantee Scheme (NDGA). This move ensures that depositors will be covered up to N$50,000 each when the bank begins operations.

According to NAMPA, the NDGA presented Access Bank with its membership certificate, which compensates depositors if their deposits with a member institution become unavailable. This scheme is fully funded through annual premiums collected from member institutions.

Petrus Shifotoka, Head of NDGA, clarified that the N$50,000 limit applies per depositor, per bank. For instance, a depositor with N$70,000 in a failed bank would receive N$50,000 from the NDGA, with the remaining N$20,000 paid later after the bank's liquidation process. The aim is to fully cover small depositors, as larger depositors can often relocate their funds earlier.

The NDGA covers current, savings, and call accounts, but excludes interbank deposits, government and state-owned enterprises deposits, and bonds and bills. Access Bank's arrival aligns with the Namibia Financial Sector Transformation Strategy, which seeks more competition in the sector. The scheme now includes eight members, consisting of six banking institutions, one foreign bank branch, and Access Bank.

Annual premiums for the scheme are risk-based, calculated from a bank's performance over the previous four quarters, including factors like capital adequacy and liquidity. The NDGA plans to distribute materials with information about the scheme to reassure customers of their funds' safety.

Oluseun Onasoga, Managing Director of Access Bank Namibia, stated that the certificate is a step towards opening its doors, a goal pursued for over five years. He assured that customer funds are guaranteed by both the bank's ethics and the Namibian government. The Bank of Namibia granted the authorization under the Banking Institutions Act, allowing the bank to provide banking services to the public.

Access Bank, headquartered in Nigeria, has grown significantly and now serves over sixty million customers, positioning itself as Africa's largest universal bank by customer base.