The Bank of Uganda has approved Finance Trust Bank Limited’s request to change its operating status, allowing the lender to shift from a Tier I commercial bank to a Tier II credit institution, effective April 1, 2026.
In an official statement, the central bank said the transition will affect certain products and services currently offered under its commercial bank licence. Finance Trust Bank will have a three-month period, from January 1 to March 31, 2026, to adjust operations and phase out offerings exclusive to Tier I commercial banks.
“During this period, the bank will make adequate arrangements to discontinue products and processes that require a Tier I Commercial Bank License to ensure a smooth transition for customers and maintain financial system stability,” the Bank of Uganda stated.
The move follows a strategic decision by Finance Trust Bank’s board to refocus its operations and better serve its core customer base. The central bank reassured the public that the bank remains financially sound and meets the minimum capital requirements for a Tier II licence.
“Finance Trust Bank is adequately capitalized and continues to operate safely under the Tier II Credit Institution License,” the statement added.
The Bank of Uganda also urged customers to remain calm, reaffirming its commitment to maintaining the stability of the banking sector. Customers seeking clarification are advised to contact either Finance Trust Bank or the Bank of Uganda.
