Banks / Financial Institutions

Banks & Financial services

Financial services industry in Uganda comprises the Banking, Insurance, Microfinance and investments sectors, remains dominated by the banking sector.

The Sector has experienced tighter BOU supervision, more stringent requirements and higher capital requirements with the passing of the Financial Institutions Act in 2004 and the Financial Institutions Regulations in 2005. This has facilitated a quick recovery of the sector following the closing of several domestic banks in 1998 and 1999.

Most banks in the country are foreign owned, including major international institutions such as Stanbic, Citibank, Barclays, and Standard Chartered. However, a number of locally owned banks have been established including DFCU Bank, Crane Bank and Cerudeb. The insurance sector remains a small part of the financial services system and in 2005, it was comprised of twenty licensed insurance companies, under the supervision of the Uganda Insurance Commission. The sector has experienced the successful privatization of the National Insurance Company, which was previously one of the largest insurance companies in terms of underwriting.

Commercial Banks

This class includes commercial banks, which are authorized to hold checking, savings and time deposit accounts for individuals and institutions in local as well as international currencies. Commercial banks are also authorized to buy and sell foreign exchange, issue letters of credit and offer loans to customers.

Development Banks

These are financial institutions that provide risk capital for economic development projects on a non-commercial basis e.g. Uganda Development Bank, East African Development Bank

Credit Institutions

This class includes Credit and Finance companies. They are authorized to take in customer deposits and to establish savings accounts but they do not trade in a foreign country or establish check accounts. They are also authorized to make collateralized and non-collateralized loans to customers e.g. Post bank, Brac Uganda bank, Mercantile Credit Bank etc.

Microfinance Deposit-Taking Institutions (MDIs)

This class includes microfinance institutions, which are allowed to take in deposits from customers in the form of savings accounts and are regulated by the Bank of Uganda. Microfinance Deposit-taking Institutions are not authorized to offer checking accounts or to trade in foreign currency.

Microfinance Institutions (MFIs)

This class includes the rest of microfinance institutions, Saccos etc. The SACCO regulations implement the Tier 4 Microfinance Institutions and Money Lenders Act,2016 which mandates Uganda Microfinance Regulatory Authority (UMRA) to regulate, license, and supervise SACCOs, Money Lenders, and Non-Deposit Taking Microfinance Institutions.

Central Bank