The Corporation for Deposit Insurance (CODI) marks two years of providing explicit protection for covered depositors in South Africa.
During the past financial year, CODI continued to refine its role as a critical component of the country’s financial safety net, supporting confidence in the banking system and safeguarding depositors.
Sincere appreciation is extended to the CODI team and the Board for their outstanding dedication to safeguarding depositors and for their ongoing efforts to ensure CODI’s future success.
The 2025/26 financial year marked a period of consolidation and operational delivery for CODI, following its operationalisation in April 2024.
CODI successfully conducted its first depositor reimbursement after Ditsobotla was placed into resolution on 1 August 2025. Further, it reimbursed covered depositors within the timeframes prescribed by law, distributing approximately R7 million over a 20-day period.
The experience highlighted the importance of timely access to accurate depositor data and informed targeted refinements to CODI’s reimbursement processes to support shorter payout timeframes going forward.
CODI safeguards South Africa’s financial system by protecting depositors and supporting financial stability. Established under the Financial Sector Regulation Act 9 of 2017 (FSR Act) as a wholly owned subsidiary of the SARB, CODI serves as South Africa’s deposit insurer within the broader financial sector regulatory framework.
CODI manages the DIF, which banks fund through monthly premiums and liquidity loans to ensure that there are sufficient funds available for qualifying depositors to have timely access up to R100 000 of their covered deposits in the unlikely event that a bank is placed in resolution.
This protection strengthens public confidence in the banking system and reduces the risk of financial contagion.
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Protecting depositors when a bank fails
Since becoming operational in April 2024, CODI has been integrated into South Africa’s financial safety net, providing depositors with reasonable access to their deposits when a bank is placed into resolution.
The financial safety net comprises the PA, FSCA, SARB, SARB as the Resolution Authority (RA) and CODI, supported by the DIF.
CODI can use the DIF to support the resolution of the bank in one of the following ways:
- pay out the covered deposits of a bank in resolution;
- provide a secured loan to the bank in resolution;
- provide a loss-sharing agreement between CODI and the bank in resolution or a person assuming liability for the covered deposits of the bank in resolution; or
- offer a guarantee in favour of the bank in resolution, the SARB or another person in respect of the bank’s obligations in relation to the covered deposits of the bank in resolution.
CODI’s Strategy 2030 builds on the strategic progress achieved during 2024 and 2025.
The strategy focuses on maturing CODI’s operational processes, enhancing its resolution support readiness and ensuring the DIF remains adequately funded.
Strengthening confidence in CODI’s protection framework is underpinned by regularly assessing the adequacy of CODI’s coverage, ongoing engagement with banks and enhanced public awareness.
The FSR Act prescribes CODI’s governance and reporting framework and establishes the Board and the Investment Committee.
While CODI is a wholly owned subsidiary of the SARB, its affairs are managed by the CODI Board, which exercises oversight of CODI’s management and administration.CODI operates effectively and efficiently through governance systems and processes aligned with international standards.
In terms of section 166AI of the FSR Act, CODI is required to have a Board comprising eight (8) members, drawn from the following representatives:
- a representative from NT, appointed by the Director- General of NT;
- a SARB Deputy Governor, appointed by the Governor of the SARB;
- the CEO of the PA;
- the CEO of CODI;
- the Commissioner of the FSCA;
- the Group Chief Financial Officer (CFO) of the SARB; and
- not more than two persons appointed by the SARB Governor as directors, with the concurrence of the Minister of Finance (Minister).
Membership of CODI is mandatory for all banks registered under the Banks Act 94 of 1990, the Mutual Banks Act 124 of 1993 and the Co-operative Banks Act 40 of 2007. It includes banks operating in South Africa that are regulated and supervised by the PA. CODI maintains an updated list of member banks on its webpage on the SARB website.
As of 31 March 2026, CODI had 35 member banks, comprising 15 commercial banks, 4 cooperative banks, 4 mutual banks and 12 local branches of foreign banks. During the period under review, Ditsobotla was placed into resolution, while eNL Mutual Bank and OM Bank Limited were onboarded.
Member banks are required to display a CODI membership sign on at least one of their digital platforms or at their physical branches to inform depositors of their membership.
If a bank fails, CODI protects covered depositors’ balances up to R100 000 per qualifying depositor, per registered bank. This amount includes both the savings and any interest earned.
Most depositors (about 9 out of every 10) have R100 000 or less in qualifying accounts and are therefore protected. If a depositor has more than R100 000 saved, CODI will provide access to R100 000, but any amount above that must be claimed from the failed bank during the liquidation process.
