Bank of Uganda authorises Finance Trust Bank to transition to a Tier II credit institution licence from 1 April 2026

The Bank of Uganda has authorised Finance Trust Bank Limited (FTB) to transition from a Tier I commercial bank licence to a Tier II credit institution licence, effective 1 April 2026. The regulator is supervising the transition and states the bank will continue operating, with depositor and customer interests protected. FTB has a three-month transition period from 1 January to 31 March 2026 to phase out products and processes that require a Tier I licence, with the aim of ensuring continuity of service and mitigating disruption to financial sector stability. The change follows a board decision to reposition the institution, and the Bank of Uganda notes that FTB is adequately capitalised and meets the minimum capital requirements for a Tier II licence. After the transition, FTB will no longer provide services restricted to Tier I commercial banks, including current accounts, issuing new overdrafts (existing overdrafts will run off as they mature), and participation in the interbank market as placements mature, while continuing core services such as deposit-taking and lending and selected activities including foreign exchange buying and selling, eligible foreign currency deposit accounts, clearing and wire transfers via a third party, and certain trade finance products. Customers affected by any product or service changes are to be informed directly by the bank during the transition period, ahead of the new licence status taking effect on 1 April 2026.