THE Central Bank has extended administration of Bank M for sixty days more after expiry of the initial 6 0 days under its management as it continues weighing resolution options for the troubled bank hit by liquidity challenges.
The Central Bank said in a statement yesterday that it extended administration period for 6 0 days more effective from the 2nd of November because the process to determine resolution options was not complete.
“Accordingly, the Bank of Tanzania wishes to inform the public that the process of determining resolution options has not been completed thus extends administration of the bank for a period of 6 0 days effective 2nd November 2018,” the public notice, partly read.
Exercising its powers under Section 56 (1) (g) (iii) of the Banking and Financial Institutions Act, 2006, the Bank of Tanzania took administration of Bank M effective from 2nd August 2018 following determination that the bank had critical liquidity problems and was unable to meet its maturing obligations.
Continuation of the bank’s operations in the current liquidity conditions is detrimental to the interests of depositors and poses systemic risk to the stability of the financial system,” the Bank of Tanzania said in the August statement.
Following the takeover, the Bank of Tanzania suspended normal business operations of Bank M for a period of 90 days to allow the central bank to determine appropriate resolution option.