The Bank of uganda has confirmed that the finance trust bank has been authorized to transition from a tier I commercial bank license to a tier II credit institution license effective 1st April 2026 after discovering that finance trust bank is adequately capitalized and meets the minimum capital requirements for a tier II institution.
Through a statement released by Kenneth egesa the director communications Bank of uganda,this decision was reached after the finance trust bank’s board of directors decided to adopt a strategic shift and reposition the institution to serve its core customer base better.
According to the statement, Finance Trust Bank has been granted a three-month transition period from 1 January 2026 to 31 March 2026 to phase out products and processes that require a Tier 1 commercial bank licence. The move is intended to ensure a smooth service transition for its customers and to mitigate any disruption to financial sector stability.
Finance Trust Bank founded in 1984 as Uganda women’s Finance Trust Limited rebranded to Uganda Finance Trust Limited,a tier III financial insititution , recognized as a micro finance deposit -taking institution under the supervision of the bank of uganda before being granted a full commercial banking license on 11 November 2013.
Finance Trust Bank joins other banks including but not limited to ABC Capital Bank,Guaranty Trust Bank and opportunity Bank who became Tier II institutions after the minister of finance,in consultation with the bank of uganda signed new regulations raising minimum capital levels for commercial Banks from 25 Billion to 150 Billion uganda shillngs by 30 June 2024.
