INTERNATIONAL –Tanzania’s central bank has transferred the assets and liabilities of Bank M to Azania Bank, Deputy Governor Bernard Kibesse said on Tuesday.
The Bank of Tanzania took over the management of Bank M in August saying it had critical liquidity problems and was unable to meet its obligations.
“After acquiring the assets and liabilities of Bank M, Azania Bank will now have a capital of 164 billion Tanzanian shillings ($71.46 million), which is way above the minimum capital requirement of 15 billion shillings,” Kibesse told a news conference.
At the time it was put under administration, Bank M had an asset base of 1 trillion shillings.
“Bank M failed to meet liquidity requirements and could not meet its maturing obligations, hence the decision by the central bank to put the bank under administration,” Kibesse said.