Parliament on Monday passed the Depositors Protection Bill, 2015 to protect the savings of depositors and also promote confidence in the financial system.

The bill became necessary in the wake of the microfinance financial crisis involving DKM Microfinance Company and four other Savings and Loans Company in the Brong Ahafo Region.

READ MORE: Parliament to consider Deposit Protection bill

The bill will become law after the president assents to it.

The bill requires the establishment of Deposit Protection Fund Corporation where the banks and depositors pay an amount when they deposit their money to the Corporation.

The Corporation in turn takes the funds and buy an insurance from an insurance company.

Finance Minister Seth Terkper said the bill will protect people with a savings or current account who deposit money in the bank.

“Now we all heard about the global financial crises where because of certain developments in the banking and financial sector a lot of depositors lost their money,” he added.

Speaking on the new bill, Member of Parliament for New Juaben South and Member of Finance Committee said the Bank of Ghana must strengthen its supervisory role in other to ensure the implementation of the bill.

READ MORE: Parliament hits at BOG for ditching discussions on Depositors Bill

“The banks and specialized deposit taking seeks to tighten the supervisory role of the bank and also to rope in a lot of the things which went unchecked,” he said.

He added: “So when that has been passed, I think we will see some tightening. But I think the bank has to recruit some more staff into their banking supervision.”