Uganda Commercial Bank Ltd (UCB/UCBL) 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 (Uganda) Limited.
Uganda Commercial Bank was established by an Act of Parliament, "The
Uganda Commercial Bank Act, 1965". The new bank was to replace the
Uganda Credit and Savings Bank.
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, the bank's branch network expanded rapidly
when it took over most of the branches of foreign-owned banks -
Uganda Commercial Bank with nearly a monopoly in banking
markets outside Kampala. The fall of Amin's government in 1979 brought
a revival of foreign development assistance 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
In the late 1980s, the bank opened 130 new branches and further
expanded its investments, and by the 1990s it 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, had 24 branches.
Sale and merger
In the late 1980s and early 1990s, the government of
private sector development (PSD) policies and decided to divest itself
of the majority of government-owned corporations.
In 1997, an agreement to sale 51% stakes in
Uganda Commercial Bank was
concluded with the Malaysian industrial conglomerate Westmont Land
Asia Bhd. 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 investment bank Standard Bank.
Standard Bank merged Uganda
Commercial Bank with its existing bank Stanbic Bank
^ "Free Law Books from The International Book Facilty (ILBF) ULII".
www.ulii.org. Retrieved 2017-09-06.
^ a b Brownbridge, Martin; et al. (1998).
Banking in Africa: The
Impact of Financial Sector Reform Since Independence. Africa World
Press. p. 130. ISBN 0-86543-693-2.
^ U.S. Library of Congress. Economy of Uganda: Role of the Government
^ "Uganda's largest bank for sale". BBC News. 17 O