Taming🔥

Welcome to this week’s edition of ፍራንክ Digest!

Your weekly brief on all things Finance and Investing. Quick, enjoyable reads for busy professionals in 5 minutes or less.

Topics this week:

• 🏛️ Banking On Trust: Ethiopia’s leap into Deposit Insurance

• 🔧 National Bank of Ethiopia has a new tool to control inflation

Thanks for reading!

Deposit Insurance: Securing Your Savings

Banking

In 1933, the US proposed establishing the Federal Deposit Insurance Corporation or FDIC for short. 

Its purpose? To maintain stability and public confidence in the nation's financial system by providing an insurance policy on deposits up to a certain amount entrusted to banks.

What caused all of this you may ask?

The stock market crash of 1929 followed by tight monetary policies created a severe economic downturn with banks failing, panic ensuing and people 🏃‍♀️ to withdraw their money to salvage what little nest egg they had.

Almost a hundred years later, deposit insurance is one of the cornerstones of a healthy banking system all over the world.

And just recently, the concept was embraced by Ethiopia as well (ለምንስ ይቅርብን!…)