Emmanuel Tumusiime-Mutebile: Fostering a strong financial sector in
Uganda
Speech by Mr Emmanuel Tumusiime-Mutebile, Governor of the Bank of Uganda, at the
official launch of Finance Trust Bank Ltd., Kampala, 17 January 2014.
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Your Excellency, The President of the Republic of Uganda
Honourable Ministers
Honourable Members of Parliament
The Board of Directors, Finance Trust Bank
The Managing Director and Staff of Finance Trust Bank
Distinguished Guests
Ladies and Gentlemen
I am honoured to be here this evening for the launch of Finance Trust Bank. I would like to
begin by congratulating the Shareholders, the Board of Directors, the Management and Staff
of Finance Trust Bank who have all worked tirelessly to bring about the conversion of the
institution from a Tier 3 Microfinance Deposit- taking Institution to a commercial bank.
This latest entry to the commercial banking industry in Uganda has its origins in the Uganda
Women's Finance Trust that had been started in 1984 with the objective of providing financial
services to low income people in Uganda, especially women. It has thus been providing
financial services to Ugandans for 30 years. In particular, it has provided services to low and
medium income segments of the population with a specific focus on women and the youth,
offering a wide range of services like savings and loans, bill payments and money transfer
services. The history of this institution demonstrates that it is committed to contributing to one
of the nation's strategic development priorities; that of promoting inclusive growth.
At the time of becoming a commercial bank in November last year, Finance Trust had a
capital base of UGX 28 billion, it had UGX 43 billion in customer deposits, and UGX 59 billion
in loans. The bank has a network of thirty one branches and six Automated Teller Machines
across the country.
The transformation to a commercial bank will enable Finance Trust Bank to widen its
customer base. The bank's capital base has increased and business volumes are expected
to follow suit. However, the introduction of new products and the expansion of the bank's
portfolio require diligent board and senior management oversight to ensure that the risks
which will attend this expansion are managed prudently.
Your Excellency, the Bank of Uganda is committed to fostering a strong and vibrant financial
sector which can contribute to the economic growth of the country while maintaining the
safety of depositors' funds. The BOU is also committed to maintaining macroeconomic
stability which is the essential bedrock of a vibrant economy that can attract long term private
investment.
The BOU has also taken the lead in championing financial inclusion which entails spreading
access to financial services to those who currently are not served by financial institutions.
Finance Trust Bank is expected to make a very important contribution to the promotion of
financial inclusion given the nature of its customer base. I would also like to mention that,
through the Uganda Bankers Association, the commercial banks have put in place financial
literacy campaigns aimed at educating the public about financial services. These campaigns
augment the BOU's financial inclusion efforts.
On the regulatory front, Your Excellency assented to the Anti-Money Laundering Act last
year. This legislation is essential to our efforts to combat money laundering, the effects of
which on our economy and society are pernicious. In addition, legislation is in the pipeline to
provide a regulatory framework for Islamic financial services and banc assurance. The East
African Payments System went live last year and this enables financial institutions to speed
up settlement of cross border transactions and to support the growth of trade in the East
African Community.
With these remarks allow me to once again extend my heartfelt congratulations to Finance
Trust Bank for the successful transition to a commercial bank.
Thank you very much for listening to me.