The Bank of Uganda (BoU) has authorized ABC Capital Bank (U) Limited, Guaranty Trust Bank (U) Limited, and Opportunity Bank to transition from a Tier I Commercial Bank License to a Tier II Credit Institution License effective July 1, 2024.
These 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.
Michael Atingi-Ego – Deputy Governor says 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 these institutions to serve their core customer base better. The institutions are adequately capitalized and meet the minimum capital requirements for a Tier II License,” he said in a statement.
The BoU reassures the public that it remains committed to ensuring stability of the financial system.
