BANK of Tanzania (BoT) is still working on reorganising the ownership of Twiga Bancorp almost five months after it called for interested parties to acquire the capital-troubled bank.
BoT Director of Banking Supervision Mr
Kened Nyoni told the `Daily News' that the Central Bank resolved to
reorganise Twiga’s ownership in a bid to address problems of
undercapitalisation. “Bank of Tanzania will inform all stakeholders
including the public regarding the final resolution to be adopted for
Twiga,” Mr Nyoni said.
The measure taken in the last week of
last October after BoT determined Twiga was a significantly
undercapitalised institution based on Banking and Financial Institutions
Act, 2006 and its regulations.
“This posed a systemic risk to the
stability of the financial system and that the continuation of Twiga
operations in that undercapitalised state was detrimental to the
interest of its depositors and other creditors,” Mr Nyoni said.
By the time BoT took control of Twiga, the bank was stuck with a staggering debt of some negative 21bn/-.
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