Bank M troubles lower deposits by 16pc in Dar Zone

Dar es Salaam. Bank deposits in the Dar es Salaam Zone fell by 16.3 per cent during the third quarter of last year following the closure of Bank M Tanzania.

The zone encompasses Dar es Salaam and Coast regions.

Provisional data published on the consolidated zonal economic performance report for the third quarter of 2018 by the Bank of Tanzania (BoT) shows that the area’s deposits fell to Sh9.8 trillion during the third quarter last year from Sh11.8 trillion during a similar quarter of 2017.

The Bank M was put under BoT administration in August last year, after failing to meet its financial obligations. It was merged with Azania Bank last month.

However, the zone still accounts for 60 per cent of all deposits recorded during the period, followed by the Northern Zone with 16 per cent and Lake Zone with 8.3 per cent of all deposits.

The report shows that in other zones, deposits grew with Northern Zone outrivalling others after attaining a growth of 47.9 per cent to Sh2.7 trillion in Q3, 2018.

It grew at Sh1.8 trillion during similar a quarter of 2017.

Other strong deposits growths were recorded by Southern Highlands and Central zones, which grew by 17.2 per cent and 16.3 per cent respectively.

Deposits in the Southern Highlands increased to Sh830.9 billion during the third quarter of last year from Sh708 billion during a similar period in 2017.

Deposits in the Central Zone increased to Sh1 trillion from Sh905 billion. In the South Eastern Zone, deposits grew by 3.4 per cent to Sh522 billion during Q3, 2018.

The area registered the growth of Sh505 billion in the third quarter of 2017.

The report show that total deposits in banking industry slowed to Sh16.3 trillion during the third quarter of last year from Sh17 trillion during a similar period in 2017.