Nairobi, April 20 -- Uganda's Deposit Protection Fund (DPF) has agreed on rules to stem systemic risks and maximise asset recovery in the event of bank failures as part of a five-year crisis management plan seeking to bolster depositor confidence and open up the banking sector to more investments.

The rules contained in the liquidation policy and procedures manual provide guidance on orderly and efficient closure of failed banks, minimise systemic risks and maximise asset recovery.

Systemic risk is the risk of an entire financial sector collapsing as a result of the failure of an individual bank, leading to a severe economic downturn.

DPF's crisis management plan (2022-2027) aims to ensure fast and decisive actions in case of bank clos...