Uganda Commercial Bank Ltd (UCB/UCBL) was a Uganda

Uganda

Uganda , officially the Republic of Uganda, is a landlocked country in East Africa. Uganda is also known as the "Pearl of Africa". It is bordered on the east by Kenya, on the north by South Sudan, on the west by the Democratic Republic of the Congo, on the southwest by Rwanda, and on the south by...

n government-owned bank, and the largest financial institution in the country. In 2001 the bank was privatised and merged into Stanbic Bank (Uganda) Limited

Stanbic Bank (Uganda) Limited

Stanbic Bank Limited is a commercial bank in Uganda. It is one of the commercial banks licensed by Bank of Uganda, the national banking regulator.-Overview:...

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History

Uganda Commercial Bank was established by an Act of Parliament

Act of Parliament

An Act of Parliament is a statute enacted as primary legislation by a national or sub-national parliament. In the Republic of Ireland the term Act of the Oireachtas is used, and in the United States the term Act of Congress is used.In Commonwealth countries, the term is used both in a narrow...

, "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

Idi Amin

Idi Amin Dada was a military leader and President of Uganda from 1971 to 1979. Amin joined the British colonial regiment, the King's African Rifles in 1946. Eventually he held the rank of Major General in the post-colonial Ugandan Army and became its Commander before seizing power in the military...

, 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

Kampala

Kampala is the largest city and capital of Uganda. The city is divided into five boroughs that oversee local planning: Kampala Central Division, Kawempe Division, Makindye Division, Nakawa Division and Lubaga Division. The city is coterminous with Kampala District.-History: of Buganda, had chosen...

. The fall of Amin's government in 1979 brought a revival of foreign development assistance

Aid

In international relations, aid is a voluntary transfer of resources from one country to another, given at least partly with the objective of benefiting the recipient country....

 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.

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 Uganda adopted private sector development

Private sector development

Private Sector Development is a strategy for promoting economic growth and reducing poverty in developing countries by building private enterprises, membership organizations representing them, and competitive markets that are stronger and more inclusive....

 (PSD) policies and decided to divest itself of the majority of government-owned corporation

Government-owned corporation

A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...

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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 Africa

South Africa

The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...

n investment bank Standard Bank

Standard Bank

The Standard Bank of South Africa Limited is one of South Africa's largest financial services groups. It operates in 30 countries around the world, including 17 in Africa.-History:...

. Standard Bank merged Uganda Commercial Bank with its existing bank Stanbic Bank (Uganda) Limited

Stanbic Bank (Uganda) Limited

Stanbic Bank Limited is a commercial bank in Uganda. It is one of the commercial banks licensed by Bank of Uganda, the national banking regulator.-Overview:...

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