Bank of Uganda warns on unsustainable depositor compensation
Deputy Governor of the Bank of Uganda, Michael Atingi-Ego, has cautioned financial institutions that using government resources to compensate depositors is not sustainable. He urged financial institutions and the Deposit Protection Fund to strengthen systems and ensure sector stability. Atingi-Ego made these remarks at the Africa Regional Committee (ARC) of the International Association of Deposit Insurers (IADI) 2024 Conference and AGM in Kampala this week. His call comes as financial institutions face numerous challenges, with some closing and others downgraded to tier two.
