Central Bank awards licenses to two new Commercial Banks - National | NTV

Central Bank awards licenses to two new Commercial Banks

By JOSEPH TUMWESIGYE

Friday October 4, 2019

 

Bank of Uganda has awarded licenses to 2 new Commercial banks. The banks, Afriland First bank Uganda Limited and Opportunity Bank Uganda limited have been given licenses to start operations effective September 12th and 13th respectively.

This makes the total number of commercial banks in Uganda, 26.

Afriland First bank is a new institution in Uganda’s banking sector. The bank was founded in Cameroon in 1987 and is the biggest financial services group in that country.

Opportunity Bank started as a Tier 3 Banking institution called Faulu. Back in 2009, the company carried out a rebranding campaign after selling shares to Opportunity International and changed its name to Opportunity Uganda Limited.

Prior to its change in status as of September 13th 2019, Opportunity Bank Uganda Limited was a Tier 2 Banking Institution and has now transformed into a Commercial bank.

Back in 2018, the Central bank faced a parliamentary probe over the controversial sale and even closure of several banks since the 90s. Today it confirms the arrival of two new Banks in the sector.

The move to license Opportunity and Afriland First is evidence to the sector's strength as it seems there is room from lower tier Banks and new ones to join in, and also a vote of confidence in Bank of Uganda which has not had a very good run thanks to scandals and Parliamentary probes starting in 2018.