Uganda Deposit Protection Fund
Bank of Uganda|
37-45 Kampala Road
|Parent agency||Bank of Uganda|
The Uganda Deposit Protection Fund (UDPF) is a Ugandan government agency that provides deposit insurance to depositors in Ugandan banks and deposit-taking microfinance institutions. The UDPF was created in July 1994.
The headquarters of UDPF are within the premises of the Bank of Uganda (BoU) at 37-45 Kampala Road, in Kampala, the capital and largest city of Uganda. The coordinates of the UDPF headquarters are 00°18'50.0"N, 32°34'47.0"E (Latitude:0.313903; Longitude:32.579711).
As of 31 December 2015, the BoU administered the UDPF and held UGX:312.8 billion belonging to UDPF. The bank held another UGX:9.6 billion belonging to the Uganda Microfinance Deposit Protection Fund (UMDPF), which the bank also administered.
Legislation passed in 2016 provided for the merging of the UDPF and the UMDPF, with the new agency being separate from the BoU. Those changes had not yet been implemented as of August 2016. The World Bank is assisting with the process of separating the functions of the new agency from those of the BoU.
The UDPF is funded by premiums charged to every licensed deposit-accepting financial institution in the country. Each account is protected up to UGX:5 million. 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.
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:
- protect small depositors from losing their savings if and when banks failed
- maintain the stability of Uganda's financial sector and payments system
- enhance public confidence in the banking system and the financial sector of the country.
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- "International Deposit Insurance Survey: Uganda" (PDF). International Association of Deposit Insurers. 2008. Retrieved 11 August 2016.
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- "Bank of Uganda: 31 December 2015 Annual Supervision Report" (PDF). Kampala: Bank of Uganda. 31 December 2015. Retrieved 11 August 2016.
- Rupiny, David (2 February 2016). "New Authority to Protect Savers Deposits - BOU". Kampala: Uganda Radio Network.
- Anyanzwa, James (20 December 2017). "EAC to harmonise depositor insurance schemes". The EastAfrican. Nairobi. Retrieved 20 December 2017.
- "Act 2: 2004 Financial Institutions Act" (PDF). Kampala: Bank of Uganda. 26 March 2004. Retrieved 11 August 2016.
- "The Micro Finance Deposit-Taking Institutions Act 2003" (PDF). Kampala: Uganda Legal Information Institute. 11 April 2003. Retrieved 11 August 2016.