The Bank of Uganda (BoU) has authorized three commercial banks (ABC Capital Bank (U) Limited, Guaranty Trust Bank (U) Limited, and Opportunity Bank) to transition from Tier 1 commercial bank license to Tier 11 credit Institution License effective July 1, 2024.
According to Michael Atingi-Ego, Deputy Governor Bank of Uganda, the three institutions have been granted a transition period of three (3) months, starting from April 1, 2024, to June 30, 2024, during which they will make adequate arrangements to phase out products and processes that require a Tier I License.
He noted that this is intended to ensure a smooth service transition for their customers and to mitigate any disruption to financial sector stability.
The change of status of the three commercial banks to credit institutions follows decisions by the respective boards of directors, to adopt a strategic shift and reposition the institutions to serve their core customer base better.
Atingi-Ego noted that the institutions are adequately capitalized and meet the minimum capital requirements for a Tier II License.