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

The announcement was made by Kenneth Egesa, BoU Director of Communications, in a public notice released on Thursday, January 29th, 2026.

According to Egesa, the bank has been granted a three-month transition period from January 1st to March 31st, 2026 to phase out products and processes that require a Tier I license.

“This is intended to ensure a smooth service transition for customers and to reduce any disruptions to financial sector stability,” Egesa noted.

He added that the move follows a strategic decision by Finance Trust Bank’s board of directors to reposition the institution and better serve its core customer base.

BoU confirmed that Finance Trust Bank remains adequately capitalized and fully compliant with the minimum requirements for a Tier II license, reassuring the public that the transition will not compromise the stability of the financial system.

The central bank emphasized that the phased approach aims to maintain uninterrupted services while aligning the bank’s operations with its new licensing framework.

BoU said it will continue to closely monitor Finance Trust Bank during the transition period, showing its commitment to maintaining confidence, stability, and efficiency in Uganda’s financial sector.