NAIROBI, KENYA: The Bank of Tanzania has taken over the administration of Bank M Tanzania Plc

In a statement Bank of Tanzania said the decision follows determination that Bank M has critical liquidity problems and is unable to meet its maturing obligations. “Continuation operations of the bank in the current liquidity condition is detrimental to the interests of depositors and poses systemic risk to the stability of financial system,”

Accordingly, the Bank of Tanzania has appointed a statutory manager and suspended its Board of Directors and Management.

Following the decision, the bank will not open for normal business for up to ninety days during which the bank of Tanzania will determine an appropriate resolution option.

According to TheCitizen.co.tz, this is the second time this year that the Bank of Tanzania is making serious decision against banks.

In January, the bank revoked the banking license of Covenant Bank, Efatha, Bank, Njombe Community Bank, Kagera Farmers Cooperative, and Meru Community Bank, on the basis of their undercapitalization.

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