African financial experts meet in Uganda over protection of savings

Source: Xinhua| 2019-09-17 13:10:12|Editor: Xiaoxia
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KAMPALA, Sept. 16 (Xinhua) -- Experts from African financial institutions on Monday started a four-day meeting here aimed at boosting efforts in protecting depositors' savings in banks.

The meeting is hosted by Uganda's central bank, Bank of Uganda, and organized by the Africa Regional Committee of the International Association of Deposit Insurers.

Emmanuel Tumusiime-Mutebile, governor of Bank of Uganda, told the delegates that deposit insurance system is a key component of the financial system safety net.

He said with the deposit insurance system in place, depositors have assurance that their savings will be repaid up to a set limit in case their bank closes.

He also said that with the system in place, banks will not suffer an unrestrained demand for cash by savers, which can cripple the financial intermediation process, disrupt the payments system, and constrain the performance of the financial sector.

David Walker, secretary-general of International Association of Deposit Insurers, told the meeting that following the 2008 global financial crisis, countries have strengthened bank supervision and introduced deposit insurers system.

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