THE Jamaica Deposit Insurance Corporation (JDIC) recently said that the build-up of funds secured to provide protection for the depositors of financial institutions under the deposit insurance scheme now totals approximately $26 billion.

Chief executive officer (CEO) of JDIC, Antoinette McKain said the fund, which has been built up over several years, is financed from the annual premiums charged to financial institutions.

“The law [states] that banks, building societies and merchant banks are to pay to the JDIC every year a premium, and that premium is based on how much deposits are being held by the bank. JDIC invests those premiums every year in safe investments and a fund is built up — this has been built up over time and that fund is actually now at $26 billion. That’s what we [will] use to pay depositors. If the fund is not enough, JDIC can borrow to supplement that fund,” she shared while speaking at digital town hall meeting.

http://www.jamaicaobserver.com/sunday-finance/deposit-insurance-fund-now-at-26-billion-jdic_203468