Tanzania’s Bank M Plc placed under receivership
Tanzania’s Central Bank ‘Bank of Tanzania’ has taken over the administration of Bank M Tanzania Plc (Bank M) effective 2nd August 2018.
“In the exercise of its powers, under section 56(1) (g) (iii) of the Banking and Financial Institutions Act 2006, the bank of Tanzania has effective 2nd August 2018, taken over the administration of Bank M Tanzania Plc.” says Bank of Tanzania in a notice to the public.
The decision to take over was influenced by Bank M’s serious liquidation problems and was unable to meet its maturing obligations.
“Continuation of the bank’s operations in the current liquidity condition is detrimental to the interests of depositors and poses systemic risk to the stability of the financial system.” Says Bank of Tanzania in a notice to the public.”
The Bank of Tanzania has appointed a statutory manager to manage the affairs of Bank M and suspended its Board of Directors and Management.
Bank M has suspended all its operations for a further 90 days during which Bank of Tanzania will determine an appropriate resolution option.
In January BoT also revoked banking licenses of Covenant Bank, Efatha Bank, Njome Community Bank, Kagera Farmers ,Cooperative Bank and Meru Community Bank due to undercapitalization.