Bank of Uganda confirms Finance Trust Bank transition to a Tier II credit institution effective 1 April 2026

The Bank of Uganda has published FAQs on Finance Trust Bank Limited’s move from a Tier I Commercial Bank licence to a Tier II Credit Institution licence, effective 1 April 2026. The central bank said it approved and is supervising the transition, which does not amount to a closure and is intended to preserve continuity for depositors and other customers. Customer deposits and accounts remain accessible, existing contracts continue under their original terms, and the bank will keep operating under the new licence category. The main change is a narrower permitted business scope. Finance Trust Bank will no longer offer services reserved for Tier I commercial banks, including current accounts, new overdrafts and interbank market participation once existing placements mature. It will continue deposit-taking and lending, foreign exchange business limited to buying and selling foreign currencies, foreign currency savings and time deposit accounts allowed under Tier II, clearing instruments and wire transfers through a third party, and selected trade finance products such as performance bonds, bid bonds and advance payment guarantees. The Bank of Uganda also said the institution is adequately capitalised, meets the minimum requirements for credit institutions, and that the shift reflects strategic repositioning rather than financial distress. A three-month transition period ran from 1 January to 31 March 2026 to phase out affected products, update systems and processes, and communicate changes to customers. Where specific products or account arrangements are affected, customers are to be informed directly by the bank.