The Central Bank of Tanzania (BOT) has effective from Monday 12th December 2022 placed Yetu Microfinance Bank (DSE:YETU) under statutory administration.
The decision to take over and place the microfinance bank under administration follows the failure of the bank to meet regulatory requirements regarding liquidity and capital adequacy, BOT explains.
“To permit Yetu Microfinance Bank to continue with banking operations while under the state of shortage of liquidity and undercapitalization is detrimental to the interest of depositors and poses a systemic risk to the stability of the financial system,” the BOT statement reads.
BOT has suspended the bank’s board of directors and management and appointed a statutory manager to manage the affairs of the bank.
The bank will not be open for normal business for a period not exceeding 90 days during which BOT will determine an appropriate resolution option.
BOT assures the public that it will continue to protect the interests of depositors and maintain the stability of the banking sector.
The last time BOT put a bank under administration was in 2020 when it took over and placed China Commercial Bank Limited (CCB) under statutory administration following the bank’s failure to meet regulatory requirements regarding capital adequacy.
The Chinese bank was then acquired in 2021 by NMB bank.
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