Following the decision, 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, the BoT said in a statement
The central bank places a bank under its administration once it notes the liquidity shortage and undercapitalization to protect depositors and the financial sector.
“…to permit Yetu Microfinance Bank Plc to continue with banking operations while under the state of shortage of liquidity and undercapitalization is detrimental to the interest of depositors and poses a systemic risk to the stability of the financial system,” the central said in a statement issued by the governor, Prof Florens Luoga.
According to Yetu Microfinance Bank Plc financial results for 2021, the bank had assets valued Sh17 billion, compared to Sh19.6 billion during the previous year.
The bank’s customer deposits stood at Sh3.69 billion in 2021 while it had extended loans worth Sh13.63 billion.
Between 2020 and 2021, the bank also extended its loss after taxes from Sh54 million to Sh1.42 billio
Share this news
This Year’s Most Read News Stories
Zanzibar Airports Authority enforces Dnata monopoly
. Airlines that have not joined the Zanzibar Airports Authority’s (ZAA) preferred ground handler, Dnata, at the Abeid Amani Karume International Airport (AAKIA) face eviction from the Terminal Three building Dnata is the sole ground handler authorised to provide services for flights that operate at Terminal 3.Continue Reading
Ground handling firms in Zanzibar start cutting jobs
ZAT and Transworld, companies providing ground handling services at Abeid Amani Karume International Airport, have to lay off workers to stay afloat.Continue Reading
Cracks show as Zanzibar’s CCM ruling party looks to 2025 polls
Cracks show as Zanzibar’s CCM ruling party looks to 2025 polls over Mr Karume’s allegation against the administration. Time for the ruling party to take stock?Continue Reading
