By Azania Post Reporter
TANZANIA will tomorrow May 17, witness again the merger of two financial institutions the Bank of Tanzania (BoT) has announced.
A similar incident happened more than ten years ago when Cost Finance merged with Furaha Finance to form CF Union bank.
Speaking to reporters in Dar es Salaam today, the BoT Deputy Governor (Financial Stability and financial deepening) Dr. Bernard Kibesse, said the approved institutions are Twiga Bancorp Ltd and TPB Bank Plc
He said the measure has been taken to improve the oversight and performance of banks owned by Tanzania government.
“The new bank, after the merger, will retain the name “TPB Bank Plc”. All customers, employees, assets and liabilities of Twiga Bancorp Ltd will be transferred to the new TPB Bank Plc,” he said.
He assured the public that BoT will continue to protect the interests of depositors and maintain the stability of the banking sector in the country.
The Bank of Tanzania put Twiga Bancorp Ltd under statutory management effective from October 26, 2016 following its undercapitalisation status.
According to the Central Bank , the merger, therefore, marks the end of BoT’s statutory management of all affairs of Twiga Bancorp Ltd effective from tomorrow .
It also makes the new TPB Bank Plc adequately capitalised as required by Section 17 of the Banking and Financial Institutions Act, 2006.