Five banks in Tanzania have been stripped of their licenses because their coffers are running low. The move comes a little over a fortnight after the country’s President Magufuli ordered the Central Bank of Tanzania to review the capital feasibility of commercial banks in the country.
The president said his order was meant to protect public interest and that the country would be far better off with “… a few viable banks than many failing ones.”
Bank of Tanzania (BoT), Tanzania’s central bank, listed the banks as follows:
- Kagera Farmers’ Cooperative Bank Limited
- Covenant Bank for Women
- Efatha Bank Limited
- Njombe Community Bank Limited
- Meru Community Bank Limited.
In its press report, BoT described the named banks as disparagingly under-capitalised and explained that their continued operation poses threatening risk to depositors and the financial system in general.
Stay posted for depositors and public response !