The move comes after the bank has failed to meet the set capital requirements making a risk to its customers. As such, the BoT has effectively closed operations of the China Commercial Bank Ltd for a period of ninety days with immediate effect.
“‘Following of China Commercial Bank Limited to meet regulatory requirements regarding capital adequacy, the Bank of Tanzania has, pursuant to powers conferred to it under Section 56(1)(g)(i) and (iii) of the country’s Banking and Financial Institutions Act 2006, taken over administration of China Commercial Bank Limited,” reads a BoT official statement to the public.
The BoT has also suspended the Board of Directors and the Management of the China Commercial Bank.
“Be informed that the Bank of Tanzania has appointed Neema Koka to be the statutory Manager with immediate effect to handle all matters pertaining to the statutory administration of China Commercial Bank Limited,” reads the statement in part.
More on this story as it unfolds: https://epaper.ippmedia.com