Women bank risks being degraded due to capital shortfall
Dar es Salaam. Tanzania Women Bank (TWB) has lost mandate to operate as a bank as its capital has fallen below the legal threshold, the Controller and Auditor General (CAG) has found out.
In a latest report which was tabled in the parliament last week, CAG observes that audit found out that the bank’s core capital had fallen below the minimum requirements contrary to Regulation 5 and Regulation 9 of the Banking and Financial Institutions (Capital Adequacy) Regulations.
This is just a number of flaws which CAG has established around operations of TWB.
Among other things, CAG audit has established that loans amounting
Sh655 million was disbursed by the bank without confirming existence of the borrowers.
On the other hand, the CAG latest report which was stabled in the Parliament last week indicate also that securities for the loan amounting to Sh200 million had not been registered with appropriate authorities.
“I also noted that loans of Sh330 million were issued to customers whose collaterals were not valued while Sh335 million were loaned to borrowers whose business licenses had expired,” reads part of the report.
