Deposit Insurance Fund provides assurance for bank deposits

The chief executive of the Deposit Insurance Fund, Dr. Desalegn Ambaw, said the fund gives citizens confidence to deposit money in banks and microfinance institutions without fear.

Addis Ababa, July 19, 2026. The fund's purpose is to ensure depositors receive compensation according to the law if banks or microfinance institutions fail, and to contribute to stabilizing the financial system.

The Deposit Insurance Fund is accountable to the National Bank. All banks except the Development Bank and microfinance institutions are members. It has collected nearly 23 billion birr in premiums from member institutions.

Of the collected premiums, nearly 21 billion birr came from regular deposits and the rest from interest-free deposits. The chief executive noted that 97 percent of depositors hold less than 100,000 birr.

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