Cape Verde’s central bank is mulling the establishment of a Deposit Guarantee Fund to protect retail customers of the country’s banks from any future crisis in that sector, Portuguese newspaper A Bola reported.

João Serra, Governor of Bank of Cape Verde, met on Wednesday with representatives of other lenders and credit institutions in the nation to discuss such a mechanism.

Mr Serra was quoted saying the participants discussed the setting up of the fund, in view of the current difficulties faced by the local banking sector and by other nations economically linked to Cape Verde.

In the long term, such a mechanism could enhance the stability of the financial sector of the archipelago, online media outlet Macauhub additionally reported.