The Deposit Protection Fund of Uganda (DPF) and the Deposit Protection Corporation (DPC), Zimbabwe on February 22, 2022, signed a Memorandum of Understanding (MOU). The MoU marked an endorsement of an already existing cordial relationship between the two institutions.
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. The virtual ceremony was witnessed by members of the Board, Management and staff from the two institutions.
Mrs. Oyet noted that at the insurance limit of UGX 10 million which is approximately USD 2,800, 98% of deposit accounts were fully protected. She highlighted the following areas of strategic focus:
- Enhancing public awareness in order to build public confidence in the financial system.
- Implementing a pay-out system which when rolled out, would enable DPF to obtain a Single Customer View of all the depositors in Contributing Institutions. This would facilitate the speedy computation of protected deposits per customer, hence enabling the Fund to start paying depositors within 7 days after a bank is closed, as recommended by IADI.
- Revisiting the regulatory framework to enable the DPF have a stand-alone law.
While concluding her remarks, Mrs. Julia Oyet echoed the DPF’s commitment in ensuring that the spirit of the provisions in the MoU are sustained and actualized.
On his part, 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.