Banking in Uganda
Encyclopedia
The early years
Prior to UgandaUganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
’s independence in 1962, Government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...
-owned institutions dominated most banking in Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
. In 1966 the Bank of Uganda
Bank of Uganda
The Bank of Uganda is the Central Bank of the Republic of Uganda. Established in 1966, by Act of Parliament, BOU is 100% owned by the Government of Uganda, but is not a government department.-Organization and Governance:...
, which controlled the issue of currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
and managed foreign exchange reserves
Foreign exchange reserves
Foreign-exchange reserves in a strict sense are 'only' the foreign currency deposits and bonds held by central banks and monetary authorities. However, the term in popular usage commonly includes foreign exchange and gold, Special Drawing Rights and International Monetary Fund reserve positions...
, became the Central Bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
. Uganda Commercial Bank
Uganda Commercial Bank
Uganda Commercial Bank Ltd was a Ugandan government-owned bank, and the largest financial institution in the country. In 2001 the bank was privatised and merged into Stanbic Bank Limited.-History:...
, which had fifty branches throughout the country, dominated commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
ing and was wholly owned by the government. The Uganda Development Bank
Uganda Development Bank
-Overview:The bank began its operations in 1972. Uganda Development Bank is the first development finance institution established by the Government of Uganda. The main objective of UDB is to promote and finance development in various sectors of the economy with particular emphasis on agriculture,...
was a state-owned development finance institution, which channeled loans from international sources into Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
n enterprises and administered most of the development loans made to Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
.
The East African Development Bank
East African Development Bank
East African Development Bank is a development finance institution with the objective of promoting development in East Africa.-Overview:...
, established in 1967 was jointly owned by Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
, Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
, and Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...
. It was also concerned with development finance. It survived the breakup of the East African Community
East African Community
The East African Community is an intergovernmental organisation comprising the five east African countries Burundi, Kenya, Rwanda, Tanzania, and Uganda. Pierre Nkurunziza, the President of the Republic of Burundi, is the current Chairman of the East African Community. The EAC was originally...
in 1977 and received a new charter in 1980.
In the 1960s, other commercial banks included local operations of Bank of Baroda
Bank of Baroda
Bank of Baroda is the third largest bank in India, after the State Bank of India and the Punjab National Bank and ahead of ICICI Bank. BoB is ranked 763 in Forbes Global 2000 list. BoB has total assets in excess of Rs. 3.58 lakh crores, or Rs. 3,583 billion, a network of over 3,409 branches and...
, Barclays Bank, Bank of India
Bank of India
Bank of India is a state-owned commercial bank with headquarters in Mumbai. Government-owned since nationalization in 1969, It is India's 4th largest bank, after State Bank of India, Punjab National Bank and Bank of Baroda. It has 3415 branches, including 29 branches outside India...
, Grindlays Bank
Grindlays Bank
The Grindlays Bank was a major British overseas bank established in 1828.It operated mainly in British colonies, especially British India. After decolonization, it was a major foreign bank in India, Pakistan and other West Asian countries. As ANZ Grindlays Bank, it was for a while the largest...
, Standard Chartered Bank
Standard Chartered Bank
Standard Chartered PLC is a multinational financial services company headquartered in London, United Kingdom with operations in more than seventy countries...
and Uganda Cooperative Bank.
During the 1970s and early 1980s, the number of commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
branches and services contracted significantly. Whereas Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
had 290 commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
branches in 1970, by 1987 there were only 84, of which 58 branches were operated by government-owned bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s. This number began to increase slowly the following year, and in 1989 the gradual increase in banking activity signaled growing confidence in Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
's economic recovery.
Growing Pains
In the late 1990s and early 2000s, the UgandaUganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
n banking industry underwent significant restructuring. Several indigenous commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s were declared insolvent, taken over by the central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
and eventually sold or liquidated. These included Cooperative Bank, Greenland Bank, International Credit Bank, Teefe Bank and Gold Trust Bank which were closed or sold. Uganda Commercial Bank was initially privatized through a sale of its majority shares to a purported company from Malaysia. However it later came to light that the actual buyer was a partnership between Greenland Bank (which itself was insolvent) and some politically connected individuals. A second privatization sale was conducted, with the Standard Bank
Standard Bank
The Standard Bank of South Africa Limited is one of South Africa's largest financial services groups. It operates in 30 countries around the world, including 17 in Africa.-History:...
emerging as the winner.
The privatized Uganda Commercial Bank was merged with the former Grindlays Bank
Grindlays Bank
The Grindlays Bank was a major British overseas bank established in 1828.It operated mainly in British colonies, especially British India. After decolonization, it was a major foreign bank in India, Pakistan and other West Asian countries. As ANZ Grindlays Bank, it was for a while the largest...
which Standard Bank
Standard Bank
The Standard Bank of South Africa Limited is one of South Africa's largest financial services groups. It operates in 30 countries around the world, including 17 in Africa.-History:...
already owned and had renamed Stanbic Bank. The combined new bank is now known as Stanbic Bank (Uganda) Limited
Stanbic Bank (Uganda) Limited
Stanbic Bank Limited is a commercial bank in Uganda. It is one of the commercial banks licensed by Bank of Uganda, the national banking regulator.-Overview:...
. , Stanbic Bank (Uganda) Limited
Stanbic Bank (Uganda) Limited
Stanbic Bank Limited is a commercial bank in Uganda. It is one of the commercial banks licensed by Bank of Uganda, the national banking regulator.-Overview:...
was the dominant commercial bank in Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
, with about 27% of all bank assets and about 20% of all bank branches. Nile Bank Limited
Nile Bank Limited
Nile Bank Ltd was a private bank, registered in Uganda, with shareholders from Uganda, Israel, and South Africa. Nile Bank has an emphasis on consumer banking.-History:...
, an indigenous institution, was acquired by the British conglomerate, Barclays Bank in January 2007 and merged with its existing Ugandan operations to form the current Barclays Bank (Uganda)
Barclays Bank (Uganda)
Barclays Bank Limited, commonly known as Barclays Bank , is a commercial bank in Uganda. It is one of the twenty-three commercial banks licensed by Bank of Uganda, the national banking regulator.-Overview:...
.
A moratorium on new commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
licenses was declared in 2004, with the passage of a new banking bill in Parliament
Parliament
A parliament is a legislature, especially in those countries whose system of government is based on the Westminster system modeled after that of the United Kingdom. The name is derived from the French , the action of parler : a parlement is a discussion. The term came to mean a meeting at which...
, which established new banking institution classification guidelines. There are four classes of lending financial institutions under the new regulations as outlined below.
New Opportunities
The moratorium on new banks was lifted in July 2007. During the eighteen (18) months that followed the lifting of the moratorium, eight (8) new commercial banks were licensed. These included Kenya Commercial BankKenya Commercial Bank (Uganda)
Kenya Commercial Bank , also known as KCB Uganda is a commercial bank in Uganda.-Overwiew:The bank focuses on meeting the banking needs of individuals and corporate entities. KCB Uganda had an asset base estimated at approximately US$77.1 million...
, Equity Bank
Equity Bank (Uganda)
-Overview:The bank provides banking services to individuals and to small and medium business enterprises. As of December 2009, the bank was the 14th largest commercial bank in Uganda with an estimated asset valuation of approximately US$81.4 million or approximately 2% of all bank assets in the...
and Fina Bank
Fina Bank (Uganda)
-Overview:As of February 2009, the bank is a small, fast-growing banking institution, providing commercial banking services to individuals and small to medium sized corporate clients. The bank is a member of the Fina Bank Group, which includes Fina Bank and Fina Bank ...
, all from Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
. Global Trust Bank
Global Trust Bank
Global Trust Bank is a commercial bank in Uganda which started operations in 2008. Its headquarters are located in a five-storey building on Kampala Road in the center of Uganda’s capital, Kampala.-Ownership:...
and United Bank for Africa
United Bank for Africa (Uganda)
United Bank for Africa is a commercial bank in Uganda. It is one of the licensed commercial banks in the country, as of June 2011.-Overview:...
trace their roots from Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
. Ecobank
Ecobank
Ecobank, whose official name is Ecobank Transnational Inc., is a pan-African banking group with a presence in more African countries than any other bank...
is headquartered in Togo
Togo
Togo, officially the Togolese Republic , is a country in West Africa bordered by Ghana to the west, Benin to the east and Burkina Faso to the north. It extends south to the Gulf of Guinea, on which the capital Lomé is located. Togo covers an area of approximately with a population of approximately...
and Housing Finance Bank
Housing Finance Bank
Housing Finance Bank is a commercial bank in Uganda. It is one of the commercial banks licensed by Bank of Uganda, the national banking regulator.-Overview:...
is an indigenous operation. Three other banks, ABC Bank (Kenya)
ABC Bank (Kenya)
ABC Bank , whose full name is African Banking Corporation Limited, is a commercial bank in Kenya. It is one of the forty-four licensed commercial banks in the country.-Overview:...
, Access Bank
Access Bank
Access Bank Plc., commonly known as Access Bank, is a commercial bank in Nigeria. The bank is one of the leading financial services providers in Nigeria, with an asset base in excess of US$4.8 billion, as of May 2009.-Locations:...
from Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
and CRDB Bank
CRDB Bank
CRDB Bank is a commercial bank in Tanzania. It is one of the commercial banks licensed by Bank of Tanzania, the national banking regulator.-Overview:...
from Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...
, have publicly declared their intention to start banking operations in Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
.
During 2008 and 2009, several of the existing bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s went on an accelerated branch expansion either through mergers and acquisitions or through denovo branch openings. , there were twenty-two (22) licensed commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s in Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
, with nearly four hundred (400) bank branches and a total of almost six hundred (600) ATM
Automated teller machine
An automated teller machine or automatic teller machine, also known as a Cashpoint , cash machine or sometimes a hole in the wall in British English, is a computerised telecommunications device that provides the clients of a financial institution with access to financial transactions in a public...
s.
As of December 2009, total commercial bank assets in Uganda were estimated at US$4.6 billion (UGX 8.73 trillion). (Official Exchange Rate in December 2009 was US$1=UGX:1,897) The number of bank accounts in the country was over five (5) million. This represented a 16% penetration, given Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
's population of 32,000,000, at that time.
By April 2011, the number of commercial banks had increased to twenty-three (23). The bank branches in the country numbered over 400. The banking sector employed over 8,700 people. Total commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
assets in the country were valued at US$4.78 billion (UGX:11 trillion). (Official Exchange Rate in December 2010 was US$1=UGX:2,300).
Rwanda
Rwanda
Rwanda or , officially the Republic of Rwanda , is a country in central and eastern Africa with a population of approximately 11.4 million . Rwanda is located a few degrees south of the Equator, and is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of the Congo...
formally joined the East African Development Bank
East African Development Bank
East African Development Bank is a development finance institution with the objective of promoting development in East Africa.-Overview:...
in July 2008. Burundi
Burundi
Burundi , officially the Republic of Burundi , is a landlocked country in the Great Lakes region of Eastern Africa bordered by Rwanda to the north, Tanzania to the east and south, and the Democratic Republic of the Congo to the west. Its capital is Bujumbura...
, as well, is expected to join the bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
in the near future.In April 2009, Bank PHB
Bank PHB
Bank PHB , formerly known as Platinum Habib Bank, is a commercial bank in Nigeria. The bank is the fifth largest financial services provider in Nigeria. The bank's assets are valued in excess of US$6 billion.-Bank PHB Group:...
, Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...
's fifth largest bank, bought 80% ownership of Orient Bank
Orient Bank
Orient Bank is a commercial bank in Uganda. It is one of the twenty-two commercial banks licensed by Bank of Uganda, the national banking regulator.-Overview:...
, Uganda's 8th largest commercial bank. This brings the current number of Ugandan banks with major investments from Nigeria to three (3).
In November 2010, Bank of Uganda
Bank of Uganda
The Bank of Uganda is the Central Bank of the Republic of Uganda. Established in 1966, by Act of Parliament, BOU is 100% owned by the Government of Uganda, but is not a government department.-Organization and Governance:...
, the national banking regulator, directed that all commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s in Uganda, must raise their minimum capital to Ugx:10 billion (approximately US$4.34 million) by March 2011 and to Ugx:25 billion (approximately US$11 million) by March 2013. Any new commercial bank entering the Ugandan market effective November 2010, has to have a minimum capitalization of Ugx:25 billion. However most of the banking activity is concentrated around Kampala
Kampala
Kampala is the largest city and capital of Uganda. The city is divided into five boroughs that oversee local planning: Kampala Central Division, Kawempe Division, Makindye Division, Nakawa Division and Lubaga Division. The city is coterminous with Kampala District.-History: of Buganda, had chosen...
, the country's capital and other large towns, leaving 42% of Ugandans at the mercy of the informal financial sector, and another 30%, totally excluded from the financial services sector, according to a study in 2010.
Tier I Financial Institutions
This class includes commercial banks which are authorized to hold checkingCheque
A cheque is a document/instrument See the negotiable cow—itself a fictional story—for discussions of cheques written on unusual surfaces. that orders a payment of money from a bank account...
, savings and time-deposit accounts for individuals and institutions in local as well as International currencies. Commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s are also authorized to buy and sell foreign exchange, issue letters of credit and make loans to depositors and non-depositors.
Asset Allocation Among Commercial Banks
, it was estimated that asset allocation among the twenty-three (23) operational Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
n commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s broke down as follows:
{| style="font-size:100%;"
|-
| width="100%" align="center" | Assets & Market Share Among Commercial Banks In Uganda
|- valign="top"
|
{| class="wikitable sortable" style="margin-left:auto;margin-right:auto"
! style="width:2em;" | Rank !! Bank !!Assets (USD) Millions!!Market Share!!Number of Branches
|-
|1||Stanbic Bank
Stanbic Bank (Uganda) Limited
Stanbic Bank Limited is a commercial bank in Uganda. It is one of the commercial banks licensed by Bank of Uganda, the national banking regulator.-Overview:...
||
|-
|2||Standard Chartered Bank
Standard Chartered Bank (Uganda)
Standard Chartered Bank Limited, commonly known as Stanchart Uganda, is a commercial bank in Uganda. It is one of the banks licensed by the Bank of Uganda, the national banking regulator.-Overview:...
||
|-
|3||Barclays Bank
Barclays Bank (Uganda)
Barclays Bank Limited, commonly known as Barclays Bank , is a commercial bank in Uganda. It is one of the twenty-three commercial banks licensed by Bank of Uganda, the national banking regulator.-Overview:...
||
|-
|4||DFCU Bank
DFCU Bank
DFCU Bank, commonly known as DFCU, but whose full name is Development Finance Company of Uganda Bank Limited, is a commercial bank in Uganda...
||
|-
|5||Centenary Bank
Centenary Bank
Centenary Bank is a commercial bank in Uganda. It is one of the twenty-three licensed commercial banks in the country.-Overview:The bank is a mid-sized financial services provider in Uganda. It is primarily involved in the promotion of development through loans to rural farmers, processors of...
||
|-
|6||Crane Bank
Crane Bank
Crane Bank is a commercial bank in Uganda. It is one of the twenty-three commercial banks licensed by the Bank of Uganda, the national banking regulator.-Overview:The bank is a mid-sized financial services provider in Uganda...
||
|-
|7||Citibank
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
||
|-
|8||Bank of Baroda
Bank of Baroda (Uganda)
Bank of Baroda is a commercial bank in Uganda. The bank is involved in all aspects of commercial banking, focusing on servicing large, medium and small business enterprises as well as individuals...
||
|-
|9||Orient Bank
Orient Bank
Orient Bank is a commercial bank in Uganda. It is one of the twenty-two commercial banks licensed by Bank of Uganda, the national banking regulator.-Overview:...
||
|-
|10||Housing Finance Bank
Housing Finance Bank
Housing Finance Bank is a commercial bank in Uganda. It is one of the commercial banks licensed by Bank of Uganda, the national banking regulator.-Overview:...
||
|-
|11||Diamond Trust Bank
Diamond Trust Bank (Uganda) Limited
-Overwiew:As of November 2011, the bank is a fast-growing, medium-sized, banking institution, providing commercial banking services to individuals and small-to-medium-sized corporate clients...
||
|-
|12||Bank of Africa
Bank of Africa (Uganda)
Bank of Africa , whose complete name is Bank of Africa Limited, is a commercial bank in Uganda. The bank is a member of the Bank of Africa Group, a multinational, Pan African bank headquartered in Bamako, Mali, with presence in eleven African countries, including Benin, Burkina Faso, Burundi,...
||
|-
|13||Tropical Bank
Tropical Bank
Tropical Bank is a commercial bank in Uganda. As of April 2010, the bank is the 11th largest commercial bank in Uganda with an estimated asset valuation of US$110 million, representing approximately 3% of all bank assets in the country...
||
|-
|14||Equity Bank
Equity Bank (Uganda)
-Overview:The bank provides banking services to individuals and to small and medium business enterprises. As of December 2009, the bank was the 14th largest commercial bank in Uganda with an estimated asset valuation of approximately US$81.4 million or approximately 2% of all bank assets in the...
||
|-
|15||Kenya Commercial Bank||
|-
|16||United Bank for Africa
United Bank for Africa (Uganda)
United Bank for Africa is a commercial bank in Uganda. It is one of the licensed commercial banks in the country, as of June 2011.-Overview:...
||
|-
|17||Ecobank
Ecobank (Uganda)
Ecobank is a commercial bank in Uganda. The bank began operations in January 2009 as a full-service bank providing wholesale, retail, investment and transaction banking services and products to governments, financial institutions, multinationals, international organizations, medium, small and...
||
|-
|18||Fina Bank
Fina Bank (Uganda)
-Overview:As of February 2009, the bank is a small, fast-growing banking institution, providing commercial banking services to individuals and small to medium sized corporate clients. The bank is a member of the Fina Bank Group, which includes Fina Bank and Fina Bank ...
||
|-
|19||Global Trust Bank
Global Trust Bank
Global Trust Bank is a commercial bank in Uganda which started operations in 2008. Its headquarters are located in a five-storey building on Kampala Road in the center of Uganda’s capital, Kampala.-Ownership:...
||
|-
|20||Cairo International Bank
Cairo International Bank
Cairo International Bank is a commercial bank in Uganda. It is one of the twenty-two banks licensed by Bank of Uganda, the national banking regulator.-Overview:...
||
|-
|21||National Bank of Commerce
National Bank of Commerce (Uganda)
National Bank of Commerce is a commercial bank in Uganda. The bank provides banking services to individuals and to small and medium business enterprises...
||
|-
|22||Imperial Bank Uganda
Imperial Bank Uganda
Imperial Bank Uganda, commonly known as Imperial Bank, is a commercial bank in Uganda. It is one of the twenty-three licensed commercial banks in the country.-Overview:...
||
|-
|23||ABC Capital Bank
ABC Bank (Uganda)
ABC Bank , whose full name is ABC Capital Bank, is a commercial bank in Uganda. The bank provides banking services to large corporations, medium-sized businesses, small business enterprises as well as individuals...
||
|-
|Total||Twenty Three||
|-
|}
Tier II Financial Institutions
This class includes Credit and Finance companies. They are not authorized to establish checking accounts or trade in foreign currency. They are authorized to take in customer deposits and to establish savings accounts. They are also authorized to make collateralized and non-collateralized loans to savings and non-savings customers:- Mercantile Credit BankMercantile Credit BankMercantile Credit Bank Limited, commonly referred to as Mercantile Credit Bank , is a credit institution in Uganda.-Location:...
- Opportunity Bank Uganda - A 100% subsidiary of Opportunity InternationalOpportunity InternationalOpportunity International is an organization that provides small business loans, savings, insurance and training to more than two million people working their way out of poverty in the developing world...
- PostBank UgandaPostBank UgandaPostBank Uganda is a non-bank credit institution in Uganda. As of May 2010, PostBank Uganda was a small credit institution whose asset base was estimated at about US$39 million.-History:...
Tier III Financial Institutions
This class includes microfinance institutions which are allowed to take in deposits from customers in the form of savings accounts. Members of this class of institutions are also known as Microfinance Deposit-taking Institutions or MDIs. MDIs are not authorized to offer checking accounts or to trade in foreign currency.- FINCA Uganda LimitedFINCA Uganda LimitedFINCA Uganda Limited, also known as FINCA Uganda, is a Microfinance Deposit-taking Institution in Uganda. It is a subsidiary and member organization of FINCA International, headquartered in the United States of America.-Location:...
- Pride Microfinance LimitedPride Microfinance LimitedPride Microfinance Limited , is a Microfinance Deposit-taking Institution in Uganda.-Location:The headquarters of PML are located in Metropole House, on Entebbe Road, in the central business district of Kampala, Uganda's capital and largest city...
- Uganda Finance Trust LimitedUganda Finance Trust LimitedUganda Finance Trust Limited , commonly called Finance Trust, is a Microfinance Deposit-taking Institution in Uganda.-Location:...
- UGAFODE Microfinance LimitedUGAFODE Microfinance LimitedUGAFODE Microfinance Limited , commonly called UGAFODE, is a Microfinance Deposit-taking Institution in Uganda.-Location:The headquarters of UGAFODE are located in Kampala, Uganda's capital and largest city.-History:...
Tier IV Institutions
These institutions are not regulated by the Bank of Uganda. They are not authorized to take in deposits from the public. However, they may offer collateralized or non-collateralized loans to the public. In 2008, it is estimated that there are over 1,000 such institutions in the country.Investment banks & Stock brokers
This is a list of investment banks and stock brokerage firms in UgandaUganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
- African Alliance Investment Bank
- Baroda Capital Markets Uganda LimitedBank of Baroda (Uganda)Bank of Baroda is a commercial bank in Uganda. The bank is involved in all aspects of commercial banking, focusing on servicing large, medium and small business enterprises as well as individuals...
- Crane Financial Services Uganda LimitedCrane BankCrane Bank is a commercial bank in Uganda. It is one of the twenty-three commercial banks licensed by the Bank of Uganda, the national banking regulator.-Overview:The bank is a mid-sized financial services provider in Uganda...
- Crested Stocks and Securities Limited
- Dyer & Blair Investment Bank
- Equity Stock Brokers Uganda LimitedEquity Bank (Uganda)-Overview:The bank provides banking services to individuals and to small and medium business enterprises. As of December 2009, the bank was the 14th largest commercial bank in Uganda with an estimated asset valuation of approximately US$81.4 million or approximately 2% of all bank assets in the...
- First Renaissance Securities Limited]
- UAP Financial Services Limited
- Stanbic Financial Services LimitedStanbic Bank (Uganda) LimitedStanbic Bank Limited is a commercial bank in Uganda. It is one of the commercial banks licensed by Bank of Uganda, the national banking regulator.-Overview:...
Insurance companies
There are twenty-five (25) insurance companies in Uganda, as of March 2010.Foreign exchange bureaus
Other regulated financial institutions include one hundred and twenty three (123) licensed foreign exchange bureaus, of which 92% are located in KampalaKampala
Kampala is the largest city and capital of Uganda. The city is divided into five boroughs that oversee local planning: Kampala Central Division, Kawempe Division, Makindye Division, Nakawa Division and Lubaga Division. The city is coterminous with Kampala District.-History: of Buganda, had chosen...
, the capital city and only 8% are located outside of Kampala.
Deposit Insurance
The Deposit Insurance Scheme was established in 1994 and became operational in 1997. It is funded by premiums charged to every licensed deposit-taking financial institution in the country. Each account is protected to the tune of Uganda Shillings (UGX) 3 million (approx. US$1,800). The Depositor Insurance Law was enacted by ParliamentParliament
A parliament is a legislature, especially in those countries whose system of government is based on the Westminster system modeled after that of the United Kingdom. The name is derived from the French , the action of parler : a parlement is a discussion. The term came to mean a meeting at which...
and states that all depositors must be paid within ninety (90) days of a bank failure and the failing institution must be sold by the auctioning of its assets within six (6) months of its seizure by the central bank
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
. If the central bank determines that the failed institution will fetch a better economic return, if sold as a whole, then it will re-open under new ownership and management, provided the new owners and managers meet the approval of the Bank of Uganda
Bank of Uganda
The Bank of Uganda is the Central Bank of the Republic of Uganda. Established in 1966, by Act of Parliament, BOU is 100% owned by the Government of Uganda, but is not a government department.-Organization and Governance:...
.
Credit Bureau
In 2008, a credit reference bureau was established for the first time in UgandaUganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
. The bureau, Compuscan
Compuscan
Compuscan is a South African credit bureau that provides consumer and commercial credit information within South Africa and other African nations....
, based in South Africa
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
, has subsidiaries in Botswana
Botswana
Botswana, officially the Republic of Botswana , is a landlocked country located in Southern Africa. The citizens are referred to as "Batswana" . Formerly the British protectorate of Bechuanaland, Botswana adopted its new name after becoming independent within the Commonwealth on 30 September 1966...
, Namibia
Namibia
Namibia, officially the Republic of Namibia , is a country in southern Africa whose western border is the Atlantic Ocean. It shares land borders with Angola and Zambia to the north, Botswana to the east and South Africa to the south and east. It gained independence from South Africa on 21 March...
, Rwanda
Rwanda
Rwanda or , officially the Republic of Rwanda , is a country in central and eastern Africa with a population of approximately 11.4 million . Rwanda is located a few degrees south of the Equator, and is bordered by Uganda, Tanzania, Burundi and the Democratic Republic of the Congo...
and Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
, with new ones planned in Kenya
Kenya
Kenya , officially known as the Republic of Kenya, is a country in East Africa that lies on the equator, with the Indian Ocean to its south-east...
and Zambia
Zambia
Zambia , officially the Republic of Zambia, is a landlocked country in Southern Africa. The neighbouring countries are the Democratic Republic of the Congo to the north, Tanzania to the north-east, Malawi to the east, Mozambique, Zimbabwe, Botswana and Namibia to the south, and Angola to the west....
.
With improved credit risk assessment afforded by the credit bureau
Credit bureau
A credit bureau , or credit reference agency is a company that collects information from various sources and provides consumer credit information on individual consumers for a variety of uses. It is an organization providing information on individuals' borrowing and bill paying habits...
, new products including medium and long-term financing like car loans and mortgage
Mortgage loan
A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan...
s have been introduced by most Uganda
Uganda
Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...
n commercial bank
Commercial bank
After the implementation of the Glass–Steagall Act, the U.S. Congress required that banks engage only in banking activities, whereas investment banks were limited to capital market activities. As the two no longer have to be under separate ownership under U.S...
s. As of February 2010, interest rates which were in the 20% to 30% range before 2008, were down to as low as 10%, for the best customers at some banks.
External links
- Most Ugandan Banks Had A Profitable 2010
- Overview of Uganda Banking Sector April 2010
- Resurgence of Uganda's Banking Sector
- UBA Uganda had US$77 million in Assets in 2008 & 130 Employees
- Bank of Uganda Raises Minimum Capital For Commercial Banks From US$2 Million To US$12.5 Million (UGX:4 Billion To UGX:25 Billion
- Bank of Uganda Working To Establish Islamic Banking In 2012
See also
- List of Financial Institutions in Uganda
- Institutions Supervised by Bank of Uganda
- List of banks in Uganda
- List of banks in Africa