Beijing — A new bank, China Commercial Bank (CCB), has been granted a provisional banking license to operate in the country. According to the Bank of Tanzania (BoT), the new bank has no banking affiliation with another bank in China or Tanzania.
The BoT Governor, Prof. Beno Ndullu said the CCB has been formed by Chinese and Tanzanian businesspersons and currently is finalising license conditions before opening up a branch in Dar es Salaam.
"China Commercial Bank Tanzania Limited is a new bank being established here in Tanzania," Governor Ndullu told 'Daily News' China bureau through an email on Wednesday.
"It is not yet operational as of now pending it meeting the final license conditions," Prof. Ndullu said. Analysts here are saying the bank connoted the name to take advantage of the rising China and Tanzania trade and political relations.
The governor in his response to 'Daily News' said no bank from China has applied for banking license than the CCB, which has a Chinese name.
"Bank of China has not applied for a banking licence in Tanzania," the governor said, adding "to the best of our knowledge, in Africa, BoC has branches in Johannesburg (South Africa), Lusaka (Zambia) and a Representative office in Nairobi (Kenya)".
The central bank said whenever they licensed a new bank it means one additional player to the industry and they believe the entry of new players will contribute in increasing the level of financial inclusion and also provides employment to Tanzanians.
According to 2013 FINSCOPE survey, the current level of financial inclusion is low, with access to baking services currently at 13.9 per cent.
According to the banking and Financial Institution (Capital Adequacy) Regulation of 2008, every bank shall commence operations with and maintain at all times a minimum core capital of not less than 5.0bn/-.
The coming of the CCB has increased the number of banks operating in the country to about 55.
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