According to the citizen news website post dated 2/8/2018 , Customers in limbo as regulator takes over Bank M
This comes after the Bank of Tanzania (BoT) took over the administration of Bank M Tanzania Limited after the regulator realized that the commercial bank was facing serious liquidity problems. The takeover became effective on Thursday, August 02, 2018.
According to the East African News website post dated 2/8/2-18. The Bank of Tanzania (BoT) has placed Bank M under receivership for failure to meet its debts.
The central bank Governor Prof Florens Luoga said that the lender failed to keep minimum reserves of Tsh50 billion ($21.9 million).
“The decision to take over the bank follows determination by the Bank of Tanzania that Bank M has critical liquidity problems and is unable to meet its maturing obligations,” BoT said in a statement.
The central bank also suspended Bank M’s board and management and appointed a statutory manager.
“Continuation of the bank’s operations in the current liquidity position is detrimental to the interests of depositors and poses a system risk to the stability of the financial system,” BoT said.
The bank’s operations have been closed for up to 90 days as BoT determines an appropriate resolution option.
The mid-sized Tanzanian lender owns Kenya’s M Oriental Bank which it acquired in 2016.
Last Updated on June 9, 2022
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