Bank deposits in Cabo Verde will be guaranteed

21 July 2016

The creation of a deposit guarantee and other response mechanisms to crises in the banking sector on Monday in Praia brought together officials from the Bank of Cabo Verde (Cape Verde) and commercial banks operating in the archipelago, local media reported.

At that meeting, the Cape Verdean central bank introduced the others to the basis for the draft Law on the Deposit Guarantee Fund, which is intended to boost the credibility of the banking system.

The board of the Bank of Cabo Verde said that the ongoing initiatives aim to strengthen the institutional framework of regulation to increase the stability of the financial sector and prevent banking crises.

The governor of the Cape Verdean central bank, João Serra, said after the meeting that the institution is “very closely” following the situation of Portuguese state bank Caixa Geral de Depósitos (CGD).

CGD is the majority shareholder of Banco Comercial do Atlântico (BCA), the largest Cape Verdean commercial bank, with 52.5% of capital, and still holds a stake in Banco Interatlântico (BI).

João Serra added he hoped the Portuguese bank would not leave Cabo Verde as its departure would lead to “many difficulties, many problems for the Cape Verdean banking system.” (macauhub/CV/PT)