In exercising of its powers under Section 56(1) (g)(iii) of the Banking and Financial Institutions Act, 2006, the Bank of Tanzania (BoT) has extended administration of Yetu Microfinance Bank Plc for a period of thirty (30) days effective 12th March 2023.
The Central Bank took administration of Yetu Microfinance Bank Plc effectively from December 12, 2022 following determination that the bank had critical liquidity and capital problems.
Following the takeover, Bank of Tanzania suspended normal business operations of Yetu Microfinance Bank Plc for a period of ninety days to allow the Bank to determine appropriate resolution option.
“Accordingly, Bank of Tanzania wishes to inform the public that the process of determining resolution option has not been completed. Bank of Tanzania assures the public that it will continue to protect the interests of depositors and maintain stability of the banking sector,” a part of statement by the BoT reads.
The Central Bank also suspended the bank’s board of directors and management and appointed a statutory manager to manage the affairs of the bank.
This means that bank will not be open for normal business for a period of the 30 days extended during which BOT will determine an appropriate resolution option.
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.