Deposit Protection Fund holds Town Hall meeting in Fort Portal City – April 12, 2024
The DPF Board Chairman, Mr. Ben Patrick Kagoro hosted representatives from a cross section of the public to a town hall engagement in Fort Portal City, Western Uganda on April 12, 2024. The Board Town Hall, as it is commonly referred to, is a deliberate initiative by the DPF Board to provide a platform for direct engagement with the public and other stakeholders and by extension, to enhance public awareness about the Fund. This was the second engagement following the first one held in Jinja City in 2023.
The participants were drawn from a wide spectrum of the public including private sector actors, government departments and agencies at the district level, the business community, cultural, , religious, political and local leaders.
The DPF Board Chairman, Mr. Ben Patrick Kagoro, the convenor of the town hall engagement delivered a presentation about the Deposit Protection Fund and the role of deposit insurance in contributing to the stability of the financial sector. His presentation focused on the genesis of the DPF, its role and functions, the governance structure, funding and asset structure and the Fund’s membership and coverage.
The Board Chairman’s message was intended to unpack the concept of deposit insurance to enable the unsophisticated members of the public to be better informed about the operations of the Fund. The presentation covered the genesis of the DPF, its roles and functions, the Deposit Insurance limit UGX 10 million which was a revision from UGX 3 million in 2019 and the coverage.
Mr. Kagoro informed participants that it is mandatory for all financial institutions regulated and supervised by the Bank of Uganda to contribute to the Fund annually. He noted that currently there were 32 Contributing Institutions comprising of 25 Commercial Banks, 4 Credit Institutions and 3 Microfinance Deposit-taking Institutions. He encouraged participants to ensure that they maintained up-to-date personal information with their respective financial institutions because the Fund relied on the updated information to facilitate fast and efficient payout, incase need arose.
Prior to his remarks, a member of the DPF Board of Directors Mr. Kalema delivered the welcome remarks in which he appreciated the participants for sparing a moment and honoring the invitation from the Fund. He noted that among others, the engagement was intended to create and enhance awareness on deposit insurance and the operations of the DPF.
While responding to comments from participants, the DPF CEO Dr. Julia Oyet emphasized the Fund’s contribution to the stability of the financial sector through building confidence of the public in the banking system. She advised participants to avoid rumors, which she said were detrimental to the performance of the banking system and could lead to bank failures or crises. She reassured the participants that the DPF was committed to its mandate as enshrined in the law.
While delivering the closing remarks, Ms. Roy Nambogo, another member of the DPF Board of Directors, emphasized that the Fund does not engage with depositors directly but rather through their respective financial institutions. She informed participants that the Bank of Uganda has responsibility over the regulated financial institutions. She advised depositors who face any challenges with the financial institutions while still in operation to address all such challenges to the Central Bank.
The town hall meeting concluded on a positive note with participants expressing appreciation for the transparency and openness exhibited by the Deposit Protection Fund as well as the enlightenment received from the Fund on deposit insurance and financial literacy matters.
