Addressing reporters here yesterday, Treasury Registrar Athumani Mbuttuka said that merging of the two banks is a continuation of measures being carried out by BoT to ensure prosperity of TPB Bank Plc.
Mbuttuka assured the 142 workers of the former TIB Corporate Ltd that the central bank measures will not affect their jobs.
“The merging of institutions with similar roles including banks is done for purposes of increasing efficiency and reduction of operational costs,” he said, elaborating that all the seven branches of TIB Corporate, assets and liabilities have been acquired by TPB Bank Plc.
He said the government’s decision is aimed at enhancing performance of public owned banks to ensure they are financially sound, sustainable financial institutions and capable of effectively and efficiently serving a wide range of customers.
Merging of banks also aims at bringing about major reforms in their operating systems, structures and corporate image, with a view of enhancing their competitive ability amongst commercial banks in the market, he affirmed.
“We will continue ensuring consistent performance of financial institutions especially banks, while protecting the interests of customers and depositors in accordance with applicable laws and regulations,” he declared.
Customers of the two banks will continue to be served at their respective branches until further notice, he stated.
Mbuttuka assured customers and the general public that banking services will not be affected due to the changes.
TPB Bank Plc Chief Executive Officer, Sabasaba Moshingi said that with the merger TPB assets will reach over 1trn/-.
“Prior to today’s official announcement of the merger, TPB recorded an increment in total deposits to reach 743bn/- from 449bn/- earlier,” he specified.
Before the merger total assets by TPB Bank Plc amounted to 657bn/-, in which case its total assets are now well over 1trn/-, he said.
The central bank was encouraged by the TPB financial performance and decided to merge it with troubled commercial banks, he explained.
In May 2018, the central bank merged TPB Bank Plc with the then Twiga Bancorp Ltd and the former Tanzania Women Bank (TWB) three months later.
Twiga Bancorp Ltd was put under statutory management of BoT on October 28th, 2016 following its being declared as undercapitalized.
Following the merger with TPB there shall remain one bank, pursuant to section 30 (1) of the Banking and Financial Institutions Act, 2006.