Standard Bank Group Ltd. unit Stanbic Bank Uganda Ltd. is set to become a bank holding company that will house the bank as well as non-bank subsidiaries, The Independent reported March 7.
The bank has applied to the Bank of Uganda for the transition, which is also subject to shareholder approval, expected in May, CEO Patrick Mweheire told the Ugandan magazine. Mweheire did not specify what non-banking business the bank seeks to enter but said the proposed change will not negatively affect shareholders, employees or customers.
Following the reorganization, the bank will operate as a subsidiary of a holding company in Uganda, according to the report, which noted that the move will make it easier for the company to access funding at the expense of tighter capital requirements and regulatory scrutiny.
