EDIF weighs shift to ‘target fund’ model amid T-bill yield drops

The Ethiopian Deposit Insurance Fund (EDIF), the statutory body established to protect retail depositors and bolster financial stability across the banking and microfinance sectors, is weighing a fundamental reform in how it assesses member contributions. Fund officials are exploring a transition from the current flat annual rate of 0.3 percent to a dynamic “target fund” model that factors in the specific risk profiles and liabilities of individual financial institutions.