Uganda Deposit Protection Fund

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Deposit Protection Fund
Agency overview
Formed1 July 1994; 27 years ago (1994-07-01)
JurisdictionUganda
Headquarters
Plot 7 Lourdel Road
Kampala, Uganda
Agency executives
  • Ben Patrick Kagoro, Chairman[1]
  • Julia Claire Oyet, Chief Executive Officer[2][3]
Parent agencyUganda Ministry of Finance, Planning and Economic Development

The Deposit Protection Fund of Uganda (DPF) is a Ugandan government agency that provides deposit insurance to depositors in Ugandan banks and deposit-taking microfinance institutions. The DPF was created in July 1994.[5][6] The law was amended in 2004 to create an independent agency, separate from the Bank of Uganda.[4]

Location[]

The headquarters of DPF are located on AHA Towers Plot 7 Lourdel Road, in Kampala, the capital and largest city of Uganda.[7] The coordinates of the DPF headquarters are 00°18'50.0"N, 32°34'47.0"E (Latitude:0.313903; Longitude:32.579711).[8]

Overview[]

As of 31 December 2015, the BoU administered the DPF and held UGX:312.8 billion belonging to DPF. The bank held another UGX:9.6 billion belonging to the Uganda Microfinance Deposit Protection Fund (UMDPF), which the bank also administered.[9]

Legislation passed in 2016 provided for the merging of the DPF and the UMDPF, with the new agency being separate from the BoU. Those changes had not yet been implemented as of August 2016.[10] The World Bank is assisting with the process of separating the functions of the new agency from those of the BoU.[11]

Operations[]

The DPF is funded by premiums charged to every licensed deposit-accepting financial institution in the country. Each account is protected up to UGX:10 million.[6] The law provides for all depositors to be paid within 90 days of a bank failure and that the failing institution must be sold by auctioning its assets within six months of its seizure by the BoU. If the BoU determines that the failed institution will fetch a better economic return if sold as a whole, then it will re-open under new ownership and management, provided the new owners and managers meet the approval of the BoU.[6]

In September 2019, Uganda's Finance Ministry increased the amount of protected deposits from UShs3 million (US$830) to UShs10 million (US$2,760).[4] As of that date, the fund covered deposits in 34 contributing financial institutions, including 24 commercial banks, 5 credit institutions and 5 micro finance deposit-taking institutions.[4]

History[]

Following the collapse of Teefe Bank in 1993, the BoU lost money when it was forced to reimburse depositors from its own coffers. In July 1994, the BoU established the a fund as a department of the bank, with three objectives:[5]

1. Protect small depositors from losing their savings if and when banks failed[6]

2. Maintain the stability of Uganda's financial sector and payments system, and

3. Enhance public confidence in the banking system and the financial sector of the country.[5]

The 2004 Financial Institutions Act provided for the formation of the DPF.[12] The UMDPF was created to protect depositors in deposit-taking microfinance institutions in 2003.[13]

See also[]

References[]

  1. ^ Paul Ampurire (13 April 2017). "Finance Minister Inaugurates New Board for Deposit Protection Fund". Kampala: Theugandatoday.com. Retrieved 6 July 2017.
  2. ^ "Uganda: BoU Names Team to Safeguard Customer Deposits in Failing Banks". East African Business Week. Kampala. 30 June 2017. Retrieved 6 July 2017 – via AllAfrica.com.
  3. ^ Martin Luther Oketch (9 December 2019). "Deposit Protection Fund develops online system". Daily Monitor. Kampala. Retrieved 10 December 2019.
  4. ^ a b c d Martin Luther Oketch (11 September 2019). "Government Increases Contribution To Depositors' Insurance Fund". Daily Monitor. Kampala. Retrieved 15 September 2019.
  5. ^ a b c "International Deposit Insurance Survey: Uganda" (PDF). International Association of Deposit Insurers. 2008. Retrieved 11 August 2016.
  6. ^ a b c d Ismail Musa Ladu (19 August 2014). "Why your bank could be closed by the regulator". Daily Monitor. Kampala.
  7. ^ "Bank of Uganda: About the Bank: Contact Us". Kampala: Bank of Uganda. 11 August 2016. Retrieved 11 August 2016.
  8. ^ Google (11 August 2016). "Location of the Headquarters of Uganda Deposit Protection Fund" (Map). Google Maps. Google. Retrieved 11 August 2016.
  9. ^ "Bank of Uganda: 31 December 2015 Annual Supervision Report" (PDF). Kampala: Bank of Uganda. 31 December 2015. Retrieved 11 August 2016.
  10. ^ Rupiny, David (2 February 2016). "New Authority to Protect Savers Deposits - BOU". Kampala: Uganda Radio Network.
  11. ^ Anyanzwa, James (20 December 2017). "EAC to harmonise depositor insurance schemes". The EastAfrican. Nairobi. Retrieved 20 December 2017.
  12. ^ "Act 2: 2004 Financial Institutions Act" (PDF). Kampala: Bank of Uganda. 26 March 2004. Retrieved 11 August 2016.
  13. ^ Uganda Legal Information Institute (11 April 2003). "The Micro Finance Deposit-Taking Institutions Act 2003" (PDF). Kampala: Uganda Legal Information Institute. Retrieved 11 August 2016.

External links[]

Coordinates: 00°17′21″N 32°19′30″E / 0.28917°N 32.32500°E / 0.28917; 32.32500

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