BOT extends administration period of Yetu Microfinance
BoT placed Yetu microfinance under statutory administration for 3 months. PHOTO | COURTESY
What you need to know:
- In 2022 BOT took over the administration of Yetu Microfinance Bank Plc after it had determined that the bank was facing critical liquidity and capital problems.
Dar es Salaam. The Bank of Tanzania (BOT) has on Tuesday March 2023 announced that it has extended the administration period of Yetu Microfinance Plc by 30 days.
In a public notice by the BOT Governor, dated March 14, the regulator announced that the decision was reached after the process to determine a resolution option was not reached.
On December 12, 2022, BOT took over the administration of Yetu Microfinance Bank Plc after it had determined that the bank was facing critical liquidity and capital problems.
“Following the takeover Bank of Tanzania suspended normal business operations of Yetu Microfinace Bank Plc for a period of 90 days to allow the bank determine appropriate resolution options,” reads the notice.
The decision to take over and place Yetu Microfinance Bank Plc under statutory administration follows failure of the bank to meet regulatory requirements regarding liquidity and capital adequacy.
“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 systemic risk to the stability of the financial system,” the regulator said in December.
As part of the action, Bank of Tanzania also suspended Yetu’s Board of Directors and Management and appointed a statutory manager to manage the affairs of Yetu Microfinance Bank Plc.
