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Tanzania: Bank of Tanzania Takes Control of China Commercial Bank

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THE Bank of Tanzania (BoT) has taken over and placed China Commercial Bank under statutory administration effective on Thursday.

The central bank’s decision came almost six years after the bank, which analysts categorised as a small bank, was incorporated in the country. The lender, which wanted to capitalise on Sino-Tanzania trade, has failed to maintain a required capital.

BoT Governor, Prof Florens Luoga, told reporters that the decision to take over was with effect from Thursday morning, following the bank’s failure to meet regulatory requirements on capital adequacy.

“Pursuant to powers conferred upon the Bank of Tanzania under Section 56(1)(g)(i) &(iii) of the Banking and Financial Institutions Act, 2006, the Bank of Tanzania has effective from today November 19, 2020 taken over and placed under statutory administration China Commercial Bank Limited,” said Prof Luoga.

He said BoT had appointed a statutory manager a very competitive woman in such affairs, who he said would be announced later to manage the affairs of China Commercial Bank.

Moreover, the central banks had also suspended its board of directors and management.

The governor said China Commercial Bank would not be open for normal business for a period not exceeding 90 days during which BoT would determine an appropriate resolution option.

He assured members of the public that it would continue protecting the interests of depositors and maintaining the stability of the banking sector, as he calmed customers to be patient during the 90-day when things were being sorted out.