Uganda planning threefold raise on deposit insurance cover this year
A Stanbic Bank stand during a weeklong exhibition in Kampala to encourage customers to take up insurance. Changes in the deposit protection cover will be contained in amendments to the Bank of Uganda Act of 1991, which Parliament is expected to approve before the end of year. FILE PHOTO | NMG
Uganda is planning to raise the official protection cover for cash depositors from Ush3 million ($805) to Ush10 million ($2,682) in a fundamental move that promises a huge relief to citizens holding fat account balances in times of a bank collapse.
But this could raise contribution costs for financial institutions in an industry haunted by previous bank failures.
