(Bloomberg) -- Uganda more than tripled the amount which bank depositors will be compensated when a financial institution collapses to 10 million shillings ($2,722).
To boost confidence in banks, the Deposit Protection Fund increased the insured amount from 3 million shillings, a limit set 22 years ago, according to an emailed statement. About 98% of cash will be fully insured with the new threshold.
The East African nation with a population of around 40 million people has 11 million accounts and deposits of about 20 trillion shillings, according to the Uganda Bankers Association.
To contact the reporter on this story: Fred Ojambo in Kampala at fojambo@bloomberg.net
To contact the editors responsible for this story: Paul Richardson at pmrichardson@bloomberg.net, Helen Nyambura, Rene Vollgraaff
