BoT transfers Yetu assets to NMB

The Bank of Tanzania (BoT) Wednesday transferred the assets and liability of Yetu Microfinance Bank to NMB Bank.

The transfer came after BoT took over the administration of Yetu Microfinance last December for 90 days before extending the period to mid-March citing capital challenges.

BoT said in a release they placed Yetu Microfinance under its administration to determine the best resolution to its regulatory challenges.

“Normal business operations of Yetu Microfinance were suspended to allow the Bank of Tanzania to determine the appropriate resolution option,” the regulator said in a press release.

The central bank said as per its mandate as provided under Section 59 (4) of the Banking and Financial Institutions Act, 2006, the process of determining the resolution option of Yetu Microfinance was completed, and the transfer of assets and liabilities to an existing bank has been adopted as the formal resolution option effective on Wednesday.

“Depositors and other creditors of Yetu Microfinance will be advised in due course how and when they will commence accessing banking services through NMB,” the statement said.

Additionally, the regulator said all borrowers are required to continue paying their maturing obligations as per the terms and conditions of the agreements.

“The Bank of Tanzania reiterates its commitment to protect the interests of depositors, creditors and maintain the stability of the banking sector,” the release said.

Yetu was suspended from trading on the Dar es Salaam Stock Exchange (DSE), about four months since it was first put under the administration of the central bank. It is crossed listed to Afrinex Exchange of Mauritius and was finalising issuance of a 4.0bn/- bond via Afrinex.