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BOT places China Commercial Bank under statutory administration

BANK of Tanzania (BoT) has placed China Commercial Bank Limited under statutory administration for failure to meet regulatory requirements “regarding capital adequacy.”

A press statement issued by the lander of the last resort on Thursday (November 19, 2020) stated that the decision to take over and place the bank under statutory administration was reached “pursuant to powers conferred upon the Bank of Tanzania under Section 56 (1) (g) (i) & (iii) of the Banking and Financial Institutions Act, 2006.”

The statement signed by BoT Governor Prof Florens Luoga cited that permitting the said financial institution to continue with banking operations while under the state of undercapitalization is detrimental to the interests of depositors and poses systemic risk to the stability of the financial system.

Meanwhile, BoT has appointed a Statutory Manager to manage the affairs of China Commercial Bank Limited and suspended its Board of Directors and Management.

“In the premises, China Commercial Bank Limited will not be open for normal business for a period not exceeding ninety days during which the Bank of Tanzania will determine an appropriate resolution option,” Prof Luoga added.

The Central Bank has assured the public that it will continue to protect the interests of depositors and maintain stability of the banking sector.

The Bank of Tanzania is the integrated regulator and supervisor of Banks, financial institutions, Mortgage Finance Institutions, Finance Lease Institutions, Credit Reference Bureaus and Bureau De Change in Tanzania. 

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Author: Daily News Reporter

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