Of fixed deposits and struggle to access unencumbered certificates of title

Additionally, accessing unencumbered certificates of title has become an uphill task, further complicating the situation for investors.

The Bank of Uganda, as the country’s central bank and the primary regulator of the financial sector, is expected to ensure the stability and integrity of the banking system. 

However, there have been growing concerns about the lack of clear communication and effective action from BoU regarding the status of fixed deposits held by banks undergoing liquidation.

Investors who have placed their hard-earned money in fixed deposits are now facing uncertainty, with no clear indication of when or if they will be able to access their funds. 

This lack of responsiveness from BoU has exacerbated the anxiety and frustration among investors, who feel left in the dark about the fate of their investments.

Historically, fixed deposits have been considered a safe investment option, offering a guaranteed return over a specified period. However, the current situation has exposed the vulnerabilities of this investment avenue. 

With banks in liquidation and the regulator seemingly unresponsive, the risk of losing money in fixed deposits has never been higher.

Investors are now grappling with the reality that their funds, which were meant to be secure and earning interest, are being held without any return and with no clear timeline for resolution. 

This has led many to question the viability of fixed deposits as a reliable investment option.

Adding to the challenges faced by investors is the difficulty in accessing unencumbered certificates of title. 

These certificates are crucial for various financial and legal transactions, and their inaccessibility has created significant hurdles for property owners and investors alike.

The inability to retrieve these important documents has not only caused considerable inconvenience but has also impeded the ability of property owners to conduct legitimate transactions or seek financing. 

This situation highlights the broader issues of asset safety and regulatory oversight in the banking sector.

Adding to the concern is the silence of the Bankers Association on this matter. 

One would expect the association to play a pivotal role in advocating for the rights of investors and ensuring transparency in the banking sector. 

However, their muted response has only added to the sense of abandonment felt by investors.

In a rather perplexing turn of events, BoU continues to expect borrowers to repay their loans, despite the fact that all the fixed deposits are being held by the bank and not earning any interest. 

This expectation places an undue burden on borrowers, many of whom are also investors with funds locked in fixed deposits.

The non-responsiveness of BoU and the silence of the Bankers Association have created a climate of uncertainty and mistrust in the banking sector. 

Investors are left wondering whether fixed deposits are still a wise investment choice, given the heightened risk of losing their money. 

Additionally, the struggle to access unencumbered certificates of title has complicated matters further, highlighting the need for regulatory intervention and transparency.

As the situation unfolds, it is crucial for BoU and other regulatory bodies to take decisive action and provide clear communication to all stakeholders. 

Only then can the confidence in the banking sector be restored, and investors can make informed decisions about where to place their hard-earned money.

Until then, investors would be wise to consider the risks carefully before committing their funds to fixed deposits, and regulators must step up to protect the interests of all parties involved.

Nicholas Mbabazi N

Former client of Mercantile Credit Bank in Liquidation