Just a few days after Uganda shut down Crane Bank, in Tanzania, the governor of the Bank of Tanzania announced a takeover of Twiga Bancorp, citing a deteriorated capital position that jeopardized its operations.
According to a 2012 Tanzania bank report by Serengeti Advisors, Twiga was a relatively small bank, ranked 28th out of 45 banks in the country. It was wholly owned by the Government of Tanzania and had 4 branches. It had $42 million in assets, $24 million of loans and deposits of $34 million. Its capital base was $3.4 million and it made a profit in 2011 of $189,000.
BANK OF TANZANIA OKAYS MERGER OF TWIGA BANCORP LTD AND TPB BANK PLC
The Bank of Tanzania (BoT) has approved the merger of Twiga Bancorp Ltd and TPB Bank Plc effective from 17th May 2018.
Bank of Tanzania… https://t.co/AEKjRdSYlm
— Bank of Tanzania (@BankOfTanzania) May 16, 2018
EDIT May 17, 2018: The Bank of Tanzania announced that it had approved a merger between Twiga and a new TPB Bank Plc which will take over all customers, employees, assets, liabilities, and protect the interests of depositors of Twiga while ensuring the stability of the banking sector. The move ends the statutory management of Twiga by the regulator – the Bank of Tanzania.