Guaranty Trust Bank (GTBank) Uganda is undergoing a significant transformation, as it transitions from a Tier 1 Commercial Bank to a Tier 2 Credit Institution. This move, approved by the Bank of Uganda, is in line with GTBank’s strengths in Retail and Small and Medium Enterprises (SME) Banking.
Mr. Jubril Adeniji, the Managing Director of GTBank Kenya and Head of East Africa, emphasized the importance of this reclassification in a statement to Media Talk Africa. He highlighted that operating as a Tier 2 Credit Institution will allow GTBank Uganda to focus on its core strengths and better serve its customers in the Retail and SME sectors.
Adeniji expressed confidence in Uganda’s economic growth trajectory and GTBank’s commitment to expanding innovative financial services across Africa. The decision to transition aligns with the bank’s strategy of maximizing shareholder value and evolving into a full-fledged Financial Services Group.
GTBank Uganda’s reclassification was driven by the need to meet the increased minimum paid-up share capital requirements for Tier 1 Commercial Banks in Uganda. The bank’s current paid-up share capital of UGX 41 billion falls short of the new thresholds set by the Ministry of Finance and the Central Bank of Uganda.
Despite the regulatory changes, GTBank Uganda assured its customers of a seamless transition and continued compliance with guidelines and best practices. The bank has conducted a thorough review of its customer base and implemented measures to meet their banking needs during this period of change.
As GTBank Uganda embarks on this new chapter, it remains dedicated to providing quality financial services and exploring opportunities for growth in both existing and new business verticals. The transition to a Tier 2 Credit Institution marks a strategic move that positions GTBank Uganda for long-term success in the dynamic banking sector of Uganda.
