Business

Bank of Tanzania Takes Over Twiga Bancorp Bank

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The Bank of Tanzania has taken over the control of Twiga Bancorp Limited.

In a statement released on Friday, order http://chakraboosters.com/wp-content/plugins/contact-form-7/includes/functions.php the country’s central bank said the undercapitalization of the bank was a threat to the whole banking stability in the East Africa’s second biggest economy.

“The Bank of Tanzania has been observing continuous deterioration of the Twiga Bancorp Limited capital position that jeopardizes its going concern,” part of the statement signed by Governor Prof. BennoNdulu said.

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To avoid further spillage, the Central Bank acted by invoking powers granted to it by the constitution and also suspended all the top administrators of Twiga Bancorp Limited.

“Considering the potential effect of inadequate capital on the bank’s operation as well as the stability of the banking system in Tanzania, Bank of Tanzania in compliance with the provisions of sections 56 (1) (g)(i) and 56(2) (a)-(d) of the banking and financial institutions act, 2006 has decided take over the administration of Twiga Bancorp Limited effective 28th October 2016 and suspended its board of directors and management.”

The governor also named a caretaker manager going to run the affairs of the bank on behalf of the Central Bank.

“Accordingly, the Bank of Tanzania has appointed Mr. Nkanwa G. Magina to be the Statutory Manager with immediate effect to handle all matters pertaining to the bank.”

Meanwhile the bank will also remain closed for one week as the arrangements for new operation is being laid.

In the neighboring Uganda, the 4th largest bank, Crane Bank Limited was taken over by the Central Bank also due to undercapitalization.

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