Bank of Tanzania has taken over and placed Yetu Microfinance Bank PLC under its statutory administration effective on Monday, December 12, 2022.
The Central bank’s decision came following the failure of the bank to meet regulatory requirements regarding liquidity and capital adequacy.
“Allowing Yetu Microfinance Bank PLC to continue operating under the state of liquidity and undercapitalization is detrimental to the interest of depositors and poses systemic risk to the financial system stability,” read a statement issued by BOT.
In addition, the Bank of Tanzania has suspended its Board of Directors and Management and appointed a statutory manager to manage the affairs of Yetu Microfinance Bank PLC.
“The Bank will not be open for normal business for a period not exceeding 90 days during which the Central Bank will determine an appropriate resolution option.”