Overview:
The DPF, which was established to protect depositors' funds, has grown its assets to over 1.4 trillion shillings, up from 200 million shillings in 2018. The fund covers deposits up to 10 million shillings, which accounts for 98% of depositors in Uganda.
KAMPALA – The Uganda Deposit Protection Fund (DPF) has assured depositors that 90% of their funds are safe and insured, in case of bank failures. This was revealed by Finance Minister Matia Kasaija during the Conference and Annual General Meeting of the Africa Regional Committee of the International Association of Deposit Insurers (IADI).
The DPF, which was established to protect depositors’ funds, has grown its assets to over 1.4 trillion shillings, up from 200 million shillings in 2018. The fund covers deposits up to 10 million shillings, which accounts for 98% of depositors in Uganda.
Minister Kasaija emphasized that the main objective of the DPF is not only to pay depositors in case of bank failures but also to give depositors, investors, and the general public confidence and comfort that their deposits are safe.
The DPF has 25 regulated financial institutions, including all commercial banks and Tier II institutions, which are mandated by law to contribute to the fund. In case of a bank failure, the DPF takes responsibility for paying depositors up to 10 million shillings.
Deputy Governor of the Central Bank, Michael Atingi-Ego, noted that deposit protection funds are becoming increasingly vital as the financial and economic environment continues to evolve. He highlighted that the Bank of Uganda has mechanisms in place to safeguard larger deposits beyond the insurance threshold.
Julia Clare Olima Oyet, CEO of DPF Uganda, said that the fund is reviewing the threshold of 10 million shillings to decide whether to increase or maintain it, as per the laws that provide for its review every five years.
The conference, which brought together heads of deposit protection funds from 14 member countries and associate members, aimed to promote best practices in deposit protection, bank resolution, and financial stability.