In a recent statement to NewsNow, Mr. Jubril Adeniji, the Managing Director of Guaranty Trust Bank Kenya and Head of East Africa, emphasized the strategic transition of GTBank Uganda from a Tier 1 Commercial Bank to a Tier 2 Credit Institution as a reinforcement of its proficiency in Retail and Small and Medium Enterprises Banking.
The approval by the Bank of Uganda for GTBank Uganda to shift to a Tier 2 Credit Institution, alongside two other banks, marks a significant milestone.
Emphasizing the alignment with the bank’s core strengths, Adeniji remarked, “Operating as a Tier 2 Credit Institution leverages our existing capital base and allows us to focus on Retail and SME Banking. Our adaptation will involve a strategic review to ensure our position in the Ugandan banking sector is optimized to drive shareholder value.”
Continuing, he expressed confidence in Uganda’s growth prospects and the commitment of the Group to foster expansion and innovation in financial services across Africa, emphasizing a proactive approach to capitalize on available capital for sustainable growth.
GTBank Uganda’s decision to transition from a Tier 1 Commercial Bank to a Tier 2 Credit Institution was announced on 30 June 2023, citing the necessity brought by the increased minimum paid-up share capital requirement for Tier 1 Commercial Banks in Uganda.
Explaining the rationale behind the reclassification, the bank highlighted the evolution of minimum capital requirements in line with Uganda’s financial sector regulations and global economic dynamics.
The bank indicated thorough scrutiny of its customer base and readiness to meet their banking needs during the transition period, subject to regulatory approvals and directives.
Looking ahead, GTBank Uganda reassured a seamless transition process with a firm commitment to upholding compliance with regulatory standards and operational best practices.