The Bank of Uganda has formally authorised Finance Trust Bank Limited to transition from a Tier I Commercial Bank license to a Tier II Credit Institution license, effective 1 April 2026 with an aim to reposition the institution to better serve its core clientele.
In a statement issued on Thursday, 29 January 2026, the Bank of Uganda Director of Communications and Public Relations, Kenneth Egesa, said the central bank had granted Finance Trust Bank a three month transition period running from 1 January to 31 March 2026 to enable a smooth adjustment.
“Finance Trust Bank Limited has been authorised to transition from a Tier I Commercial Bank License to a Tier II Credit Institution License effective 01 April 2026,” Egesa said.
He explained that during the transition period, the bank will phase out products and processes that require a Tier I commercial banking licence, a measure designed to protect customers and safeguard stability in the financial sector.
“The transition period is intended to ensure a smooth service transition for its customers and to mitigate any disruption to financial sector stability,” Egesa noted.
According to the central bank, the change in status follows a decision by Finance Trust Bank’s Board of Directors to undertake a strategic shift, refocusing the institution on its traditional market segments, particularly micro, small and medium enterprises, women-led businesses and individual borrowers.
“The change of status to a credit institution follows a decision by Finance Trust Bank’s Board of Directors to adopt a strategic shift and reposition the institution to serve its core customer base better,” Egesa said.
Bank of Uganda further assured the public that Finance Trust Bank remains financially sound, adding that the institution is adequately capitalised and fully meets the minimum capital requirements for a Tier II Credit Institution licence.
Finance Trust Bank, which has operated in Uganda’s banking sector for more than three decades, has built a strong footprint in inclusive finance, with a wide branch network and a focus on savings, loans and financial services tailored to underserved communities. As a credit institution, the bank will continue to offer deposit taking and lending services, albeit within the regulatory framework governing Tier II institutions.
The central bank used the opportunity to reaffirm its oversight role and commitment to financial stability.
“Bank of Uganda reassures the public that it remains committed to ensuring the stability of the financial system,” Egesa said.
