The Deposit Protection Fund of Uganda (DPF) and the Deposit Protection Corporation (DPC) of Zimbabwe have signed a Memorandum of Understanding (MOU) that is aimed at knowledge sharing and capacity building.
The MoU was signed by Mrs. Julia Clare Olima Oyet, the CEO of Deposit Protection Fund of Uganda and Mr. Vusilizwe Vuma, the CEO of Deposit Protection Corporation Zimbabwe at a virtual ceremony early this week.
The ceremony was witnessed by members of the Board, Management and staff from the two institutions.
Mr. Vusilizwe Vuma informed participants that the DPC was established in 2003 and that the Corporation was a paybox plus, with the mandate of judicial management, compensation and liquidation.
He noted that the signing of the MoU was a culmination of the discussions centered around advancing the two entities’ work efficiencies and effectiveness, including information sharing, capacity building and coordination of efforts towards the development of the two deposit protection entities.
In his vote of thanks, the DPF Board Chairman Mr. Patrick Kagoro expressed gratitude to DPC, Zimbabwe for the support extended to DPF since inception in 2017. He looked forward to continued cooperation between the two institutions.
The DPF was created in 2004 under the Bank of Uganda, but was made an autonomous entity in 2016 with the mandate of protecting the deposits of account holders in case a bank ran into problems.
In 2019, the Ministry of Finance, Planning and Economic Development increased the deposit insurance limit from 3 million to 10 million shillings, the maximum amount that would be given to a saver in case a bank collapsed or is shut down by the regulator.
This means when a bank is closing down, anyone with 10 million shillings will be fully paid their deposits back, while the rest will be partly paid up to 10 million, with the fate on the rest of their deposits being in the hands of the shareholder or the liquidator.