The National Institute of Banking and Finance (NIBAF) Pakistan has successfully organized a focused training session on the “Functions of Deposit Protection Corporation (DPC)” for participants of the State Bank Officers Training Scheme (SBOTS) – 27th Batch. The session took place on June 28, 2025, underscoring NIBAF’s ongoing commitment to equipping young central bankers with essential knowledge on key regulatory and safeguarding mechanisms that underpin Pakistan’s financial system.
This training was led by Ms. Rubana Rashid, Deputy Director at the Deposit Protection Corporation, who shared critical insights into how the DPC operates as an integral component of Pakistan’s financial safety net. Through this interactive engagement, the participants gained a clearer understanding of the role and responsibilities of the DPC, which is tasked with protecting depositors’ interests and enhancing the overall stability and trust in the country’s banking sector.
NIBAF, the premier training arm of the State Bank of Pakistan, regularly hosts specialized programs aimed at broadening the expertise of both new and experienced officers. This session was particularly tailored for the SBOTS 27th Batch, who are at the initial stages of their careers at the State Bank. By integrating topics like deposit insurance into their foundational training, NIBAF ensures these future regulators develop a comprehensive perspective on how the central bank and its affiliated institutions safeguard public deposits and reinforce the soundness of the financial system.
During the training, Ms. Rubana Rashid detailed the framework within which the DPC operates, highlighting its primary mandate to provide protection to depositors by compensating them in the unlikely event of a bank failure. She also discussed how such deposit protection schemes are critical to maintaining public confidence, preventing bank runs, and fostering financial inclusion by assuring depositors that their savings are secure even during periods of uncertainty.
Participants were encouraged to actively engage through questions and discussions, exploring how the DPC’s role fits into the broader regulatory architecture alongside the State Bank of Pakistan’s supervisory and monetary functions. The session also touched on international best practices in deposit insurance and how Pakistan’s model aligns with global standards while addressing local needs.
This training is part of a broader series of capacity-building efforts by NIBAF, which continually updates its curriculum to include emerging topics in financial stability, digital banking, risk management, and regulatory compliance. Such initiatives aim to strengthen the capabilities of central banking officers so they can better respond to evolving challenges in the financial ecosystem.
For the SBOTS participants, gaining a nuanced understanding of the DPC’s functions is essential as they prepare to take on responsibilities that directly impact the financial sector’s resilience. With a strong grasp of deposit protection mechanisms, these officers will be better positioned to contribute to policy and operational decisions that uphold depositor confidence and ensure long-term financial sector stability.