By the Governor of the Bank of Uganda, at the International Association of Deposit Insurers – Africa Regional Committee Conference, Kigo, 16 September 2019.
Salutations…
Good morning to you all.
I wish you all a very warm welcome; especially to the participants who have travelled from abroad to Uganda, and to this splendid resort at Kigo right next to Lake Victoria. Thank you all for honouring our invitation to the first conference by the Africa Regional Committee of the International Association of Deposit Insurers, hosted in Uganda.
I must say that the theme of this conference, ‘Why Deposit Insurance’, was very well chosen as it points attention to a key component of the financial system safety net that is meant to promote financial stability.
Fundamentally, deposit insurance exists to protect the banking system against the risk of bank “runs”, that is, 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.