Uganda financial sector

To begin with, the licence downgrade was not the result of weak performance or regulatory distress. Rather, it stemmed from structural shifts in Uganda’s banking regulatory framework. In recent years, the Bank of Uganda significantly increased minimum capital requirements for Tier I commercial banks, lifting the threshold to UGX 150 billion. This policy move—designed to strengthen systemic resilience and reduce risk in the banking sector—forced several otherwise sound institutions to reassess their strategic positioning, capital efficiency, and long-term focus. Finance Trust Bank’s transition must therefore be understood within this broader regulatory and policy context, rather than as a reflection of…