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/-.
Source:DailyNews
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