Guaranty Trust Bank (Uganda) Ltd., known as GTBank Uganda, has announced its decision to transition from a Tier-one commercial bank to a Tier-two credit institution. The announcement was made by Mr. Jubril Adeniji, the Managing Director of Guaranty Trust Bank Kenya and Head of the East African region, in a statement released on Thursday.
Adeniji explained that this transition was deemed necessary due to GTBank Uganda’s current paid-up share capital position, which stands at UGX 41 billion, equivalent to approximately 11.02 million U.S. dollars. This decision was influenced by recent regulatory changes, including an increase in the minimum paid-up share capital requirement for Tier-one commercial banks operating in Uganda.
In November 2022, the Ministry of Finance, Planning and Economic Development, in collaboration with the Central Bank of Uganda, introduced new thresholds for minimum paid-up share capital for Supervised Financial Institutions (SFIs) in Uganda. These changes necessitated a reevaluation of GTBank Uganda’s operational structure and capitalization.
After thorough consultations with stakeholders, including regulators and shareholders, GTBank Uganda concluded that transitioning to a Tier-two credit institution was aligned with global economic trends and the strategic objectives of its holding company. The decision reflects the bank’s commitment to optimizing resources and expanding its financial services offerings.
Adeniji emphasized that operating as a Tier-two credit institution allows GTBank Uganda to focus on its core strengths in retail and SME banking. This strategic shift is consistent with the bank’s vision of evolving the Guaranty Trust brand into a comprehensive financial services group.
While undergoing this transition, GTBank Uganda remains dedicated to maximizing shareholder value and contributing to Uganda’s economic growth trajectory. The bank will continue to explore opportunities within the Ugandan banking sector and beyond, with a focus on innovative financial solutions.
GTBank Uganda has conducted a comprehensive review of its customer base and implemented measures to ensure seamless banking services throughout the transition period. Pending final regulatory approvals and directives, the bank is committed to maintaining compliance with all guidelines and best practices.
Adeniji reassured customers that the transition process will be smooth, with uninterrupted banking services.
