Downgrade: Central Bank authorises Finance Trust Bank shift from commercial banking to credit institution

The Bank of Uganda (BoU) has announced that Finance Trust Bank Limited will transition from a Tier I Commercial Bank to a Tier II Credit Institution, effective April 1, 2026 .

In a public notice issued on Thursday, the central bank said Finance Trust Bank has been granted a three-month transition period running from January 1 to March 31, 2026, to enable it to phase out products and processes that require a Tier I commercial banking licence.

The move is intended to ensure a smooth transition for customers and safeguard stability within the financial sector .

According to BoU, the change in status follows a strategic decision by the bank’s Board of Directors to reposition the institution in order to better serve its core customer base.

Despite the downgrade in licence status, the regulator emphasized that Finance Trust Bank remains adequately capitalised and meets the minimum capital requirements for a Tier II Credit Institution.

“The transition is designed to mitigate any potential disruption to customers while maintaining confidence in the financial system,” the Bank of Uganda said in the statement.

BoU further reassured the public of its continued commitment to financial sector stability and oversight, noting that it will closely monitor the transition process.

Members of the public seeking further clarification have been advised to contact the Director of Communications and Public Relations at the Bank of Uganda.

Finance Trust Bank is among Uganda’s longstanding financial institutions, with a strong focus on serving small businesses, women entrepreneurs, and community-based customers.