Banks of Uganda have announced that ABC Capital Bank (U) Limited, Guaranty Trust Bank (U) Limited, and Opportunity Bank Limited are transitioning from tier one commercial bank license to tier two credit institution license effective July 1, 2024.

According to the central bank, the transition will be a period of three months, starting April 1, 2024, to June 30, 2024. During this period, adequate arrangements to phase out products and processes that require tier-one license will be made.

Michael Atingi-Ego, the Deputy Governor of Bank of Uganda said this is intended to ensure a smooth service transition for their customers and mitigate disruptions to financial sector stability.

“The change of status of the three commercial banks to credit institutions follows decisions by the respective boards of directors to adopt a strategic shift and reposition these institutions to serve their core customer base better.

The institutions are adequately capitalized and meet the minimum capital requirements for a tier two license,”  Atingi-Ego said and assured the public that the central bank is committed to ensuring the stability of the financial system.