By Our Reporter
Bank Of Uganda has issued PostBank a license to operate as a tier one commercial bank.
Based on the Financial Institutions Act (2004) definition of a commercial bank, PostBank shall no longer be categorized as a credit institution but as a deposit taking financial institution that gives loans for the purposes of consumption and investment to make profit.
As a tier one commercial bank, PostBank will now provide overdrafts and short to medium term loans; provide foreign exchange facilities; and give guarantees, bonds or other forms of collateral, among others.
PostBank’s CEO, Julius Kakeeto says efforts have been put into strengthening the bank’s foundation through a rigorous restructuring process as well as digital transformations that will improve customer experience.
“What we have been doing is building the foundation- a solid foundation, because with a very solid foundation, you can do so many things including competitiveness and growth,” said the CEO/MD Julius Kakeeto.
He noted that with these changes at the Bank, the institution will optimize its potential and ably compete with the aggressive privately owned financial institutions.
