# Uganda Commercial Bank

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Uganda Commercial Bank Ltd Type Government-owned corporation Industry Banking Defunct 2001 Fate Acquired by Standard Bank, merged into Stanbic Bank (Uganda) Limited Products Loans, Savings, Consumer Banking etc.

**Uganda Commercial Bank Ltd (UCB/UCBL)** was a [Ugandan](/source/Uganda) government-owned bank, and the largest financial institution in the country. In 2001 the bank was privatised and merged into [Stanbic Bank (Uganda) Limited](/source/Stanbic_Bank_(Uganda)_Limited).

## History

Uganda Commercial Bank (UCB) was established by an [Act of Parliament](/source/Act_of_Parliament), "The Uganda Commercial Bank Act, 1965". The new bank was to replace the [Uganda Credit and Savings Bank](https://en.wikipedia.org/w/index.php?title=Uganda_Credit_and_Savings_Bank&action=edit&redlink=1).[1]

The bank extended banking services to rural areas, and steadily expanded its branch network throughout the 1960s and 1970s. In 1971/72, following the nationalisation of foreign-owned businesses by the government of [Idi Amin](/source/Idi_Amin), the bank's branch network expanded rapidly when it took over most of the branches of foreign-owned banks - leaving Uganda Commercial Bank with nearly a monopoly in banking markets outside [Kampala](/source/Kampala). The fall of Amin's government in 1979 brought a revival of [foreign development assistance](/source/Aid) to Uganda, some of which was channelled through Uganda Commercial Bank, leading to an increase in its share of medium-term financing and its loan portfolio. The bank's branches were also used to perform functions for the government, such as the handling of payments of taxes and school fees.[2]

In the late 1980s, then chairman and managing director Dr. Frank Alfred Mwine led the bank in opening 130 new branches and further expanding its investments. Dr. Mwine was a Harvard Law educated Ugandan and a World Bank executive. By the 1990s UCB held around 50% of commercial bank deposits and had 190 of the 270 bank branches in the country. The second largest branch network at that time, the [Co-operative Bank](https://en.wikipedia.org/w/index.php?title=Co-operative_Bank_(Uganda)&action=edit&redlink=1), had 24 branches.[2]

## Sale and merger

In the late 1980s and early 1990s, the government of Uganda adopted [private sector development](/source/Private_sector_development) (PSD) policies and decided to divest itself of the majority of [government-owned corporations](/source/Government-owned_corporation).[3]

In 1997, an agreement to sale 51% stakes in Uganda Commercial Bank was concluded with the [Malaysian](/source/Malaysia) industrial conglomerate [Westmont Land Asia Bhd](https://en.wikipedia.org/w/index.php?title=Westmont_Land_Asia_Bhd&action=edit&redlink=1). However, in 1998, after Westmont failed to pay the agreed fee and was accused of acting fraudulently, the transaction was nullified. In 2001, 80% shares of the bank was bought by the [South African](/source/South_Africa) investment bank [Standard Bank](/source/Standard_Bank). Standard Bank merged Uganda Commercial Bank with its existing bank [Stanbic Bank Uganda Limited](/source/Stanbic_Bank_Uganda_Limited).[4]

## References

- [Banks portal](https://en.wikipedia.org/wiki/Portal:Banks)

1. **[^](#cite_ref-1)** ["Free Law Books from The International Book Facility (ILBF) | ULII"](https://web.archive.org/web/20110728142348/http://www.ulii.org/ug/legis/consol_act/ucba196555178/). *ulii.org*. Archived from [the original](http://www.ulii.org/ug/legis/consol_act/ucba196555178/) on 28 July 2011. Retrieved 6 September 2017.

1. ^ [***a***](#cite_ref-brownbridge_2-0) [***b***](#cite_ref-brownbridge_2-1) Brownbridge, Martin; et al. (1998). [*Banking in Africa: The Impact of Financial Sector Reform Since Independence*](https://books.google.com/books?id=Oi7vd9XXw7wC&pg=PA130). Africa World Press. p. 130. [ISBN](/source/ISBN_(identifier)) [0-86543-693-2](https://en.wikipedia.org/wiki/Special:BookSources/0-86543-693-2).

1. **[^](#cite_ref-3)** [U.S. Library of Congress.](http://countrystudies.us/uganda/40.htm) *Economy of Uganda: Role of the Government*

1. **[^](#cite_ref-4)** ["Uganda's largest bank for sale"](http://news.bbc.co.uk/2/hi/business/1604100.stm). *BBC News*. 17 October 2001.

Authority control databases International ISNI VIAF National United States People Trove Other Yale LUX

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Adapted from the Wikipedia article [Uganda Commercial Bank](https://en.wikipedia.org/wiki/Uganda_Commercial_Bank) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Uganda_Commercial_Bank?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.