The Central Bank closed five banks in Tanzania

The Bank of Tanzania (BoT) has licensed five banking licenses to the country and put them under the lawyer.

BoT has also issued a six-month limit to three other banks to implement legal provisions.

According to the BoT, the action is within the authority granted under section 56 (1) (g), 56 (2) (a), (b) and (d), 58 (2) (i), 11 ( 3) (c) and (j), 61

(1) and 41 (a)
of the Shera of Banking and Financial Institutions of 2006.

The sources of information have stated that licensed banking and placement under the lawyer are Covenant Bank for Women Limited, Efatha Bank Limited, Njombe Community Bank Limited, Kagera Farmers' Cooperative Bank Limited, and Meru Community Bank Limited.

Banked six-year-old banks to meet the legal entities are the Association of Cooperative Association Kilimanjaro, Women's Bank (TWB) and the Tandahimba Community Bank.

For the authority granted under section 41 (a) of the Banking and Financial Institutions Act, 2006, BoT appointed the Deposit Insurance Board (DIB) to be a cure from January 4, this year.

"This decision has been taken after the Bank of Tanzania is convinced that these banks have substantial capital failures in line with the requirements of the Banking and Financial Institutions Act of 2006 and its regulations," said a report published by the media.

Explained that capital losses threaten the security of the financial sector and that continuing banking services to those banks threatens the security of its customers' deposits.

The report stated that BoT wishes to assure the public that it will continue to protect the interest of depositors in banks with a view to contributing to the financial sector.