Bank of Uganda has approved Finance Trust Bank Limited’s request to change its operating status, from Tier I commercial bank to a Tier II credit institution, effective April 1, 2026,this website has learnt.
Central Bank said the transition will affect certain products and services currently offered under its commercial bank licence.
According the terms ,Finance Trust Bank will have a three-month period (January 1 to March 31) 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.
Finance Trust Bank (FTB) is a Uganda-based financial institution, established in 1984, specializing in serving low-to-medium income individuals and women operating through 36 branches, 70% of which are in rural areas,
The Bank offers savings, loans, insurance, and digital banking.
As of April 1, 2026, it is transitioning to a Tier II credit institution having originally founded as Uganda Women’s Finance Trust Limited, it became a Microfinance Deposit-taking Institution (MDI) before obtaining a commercial banking license in 2013
The Bank of Uganda approved Finance Trust Bank’s (FTB) request to downgrade from a Tier I Commercial Bank to a Tier II Credit Institution to focus on its core clientele. This was effective January 29, 2026
Annet Namulindwa the Bank Managing Director says Key branches include the Head Office at Twed Plaza (Lumumba Avenue), Katwe, Arua, Busia, Entebbe, Fort Portal, Gomba, Iganga, Jinja, Kalangala, Kikuubo, Mbale, Mbarara, and Nansana.
She further says the bank has plans to expand its footprint in areas such as Gulu, Kasese, Kabale, and Hoima