Deposit Insurance
The Deposit Insurance Scheme was established in 1994 and became operational in 1997. It is funded by premiums charged to every licensed deposit-taking financial institution in the country. Each account is protected to the tune of Uganda Shillings (UGX) 3 million (approx. US$1,800). The Depositor Insurance Law was enacted by Parliament and states that all depositors must be paid within 90 days of a bank failure and the failing institution must be sold by the auctioning of its assets within six months of its seizure by the central bank. If the central bank 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 Bank of Uganda.
Read more about this topic: Banking In Uganda
Famous quotes containing the words deposit and/or insurance:
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—Max Frisch (1911–1991)
“In taking out an insurance policy one pays for it in dollars and cents, always at liberty to discontinue payments. If, however, woman’s premium is a husband, she pays for it with her name, her privacy, her self-respect, her very life, “until death doth part.””
—Emma Goldman (1869–1940)