State pursues few but strong banks strategy

STATE owned commercial banks’ efficiency and stability are set for a big boost under the institutional consolidating that has started through mergers, the central bank said yesterday.

Bank of Tanzania’s (BoT) Deputy Governor Bernard Kibesse told reporters in Dar es Salaam that the mergers aim at retaining few but strong banks, which are highly competent in the provision of financial services.

He said the merging process has already begun with the merger of TPB Bank and Twiga Bancorp and will proceed with other state-owned banks to boost efficiency and financial stability in the banking industry. “

Other state owned banks will be combined to create strong, well capitalised and focused banks,” said Dr Kibesse who oversees financial stability and deepening. In October 2016, the central bank put Twiga Bancorp under statutory management after its capital dwindled beyond acceptable level. “

The government wants to get rid of many but underperforming banks and remain with strongly positioned banks with identity in the market,” he said.and well positioned financial institutions will reduce operational costs and lending interest rates, spearheading development agenda, as a result.

According to Dr Kibesse, the central bank’s intention is for the economy to have few but large banks with strong financial muscles. “We want even the private sector to follow suit and consolidate operations instead of having many small banks that lend at high rates,”

Dr Kibesse said, adding that the central bank is ready to approve any efficiency, soundness and stability centred merger. NMB Bank said last month it was ready to participate in the consolidation of the country’s banking sector, arguing that it’s healthier for large banks to take over the small ones.

CRDB Managing Director Charles Kimei also hinted on consolidation about two years ago, saying the situation on the ground impeded operations of small banks. According to the central bank’s financial stability report last December, the outstanding amount of bad loans increased by 12 per cent.

The overall lending rate was 17.51 per cent in March, the same as in similar month last year but slightly higher than 17.27 percent in the preceding month. Overall weighted average deposits rate declined to 8.57 per cent from 10.89 per cent and 8.91 per cent in March and February 2017, respectively.

President John Magufuli last year ruled out the possibility of the government bailing out underperforming banks. The government is currently the majority shareholder of TIB Development Bank, TIB Corporate Bank, TPB, Tanzania Women Bank and Tanzania Agriculture Development Bank.

It also has stakes in NBC Bank, NMB Bank and CRDB Bank.

The central bank revoked the licences of five “critically undercapitalised” community banks in January and put three others in a watch list for six months to protect the country’s financial stability.

It liquidated the Covenant Bank for Women (Tanzania) Ltd, Efatha Bank Ltd, Njombe Community Bank Ltd, Kagera Farmers’ Cooperative Bank Ltd and Meru Community Bank Ltd and put on watch Tanzania Women’s Bank, Kilimanjaro Cooperative Bank Limited and Tandahimba Community Bank Limited BoT believes that strong

Comments

Post a Comment

Popular posts from this blog

Diamond aibua jipya tuhuma za Hamisa Mobetto kupigwa na Bi. Sandrah

Image
Tangu wiki iliyopita zimesambaa taarifa za Hamisa Mobetto kuchezea kipigo cha ‘Mbwa Koko’ kutoka kwa mama yake Diamond – Hata hivyo ukweli wa taarifa hizo haukuwezekana kufahamika mpaka sasa. Lakini Diamond ameonekana kuibua upya suala hilo huku akionekana kutoa jibu la tukio hilo lakini kwa kutumia njia ya mafumbo. Msanii huyo wa WCB, amecomment kwenye video ya mama yake ambayo ameiweka kwenye mtandao wa Instagram kwa kumfananisha mama huyo na bondia aliyekuwa hatari zaidi ulingoni, Mike Tyson.
Read more

Idris Sultan ‘Mi Nina Kiingereza, Shilole una Nyumba Nani Anamcheka Mwenzie’

Image
Mchekeshaji Idris Sultan amezua hii jingine kupitia ukuarasa wake wa instagram baada ya kum-post Shilole “Shishi baby” na kuandika caption ambayo imezua gumzo kwa mashabiki kutokana na comments zilizoandikwa kupitia picha hiyo. Idris Sultan aliandika “Ana nyumba, ana bishara zaidi ya tatu, ana watoto, ameolewa na ni maarufu na bado ana baby face. Mi nina kiingereza tu. Tuendelee kuendekeza ujinga tutajua nani anamcheka mwenzake 😂🙌🏽”
Read more

Sababu ya kuachiwa Babu Tale ni kuwa amri ya kumkamata yeye na ndugu yake Idd Shaban Taletale ilitolewa kimakosa

Image
Sababu za kuachiwa Hamis Shaban Taletale maarufu kama Babu Tale mmoja wa wakurugenzi wa kampuni ya Tip Top Connection, aliyekuwa akisota mahabusu, akisubiri amri ya kupelekwa kifungoni gerezani, zimebainika. Babu Tale ambaye pia ni meneja wa mwanamuziki wa muziki wa kizazi kipya Naseeb Abdul, ‘Diamond Platnumz’, aliachiwa kwa muda na Jaji Edson Mkasimongwa, kwa kile kilichoelezwa kuwa amri ya kumkamata yeye na ndugu yake Idd Shaban Taletale ilitolewa kimakosa. Kwa mujibu wa chanzo chetu kutoka mahakamani hapo, makosa yaliyobainika katika amri hiyo ni kwamba aliyeitoa, Naibu Msajili wa Mahakama Kuu, Dar es Salaam, Wilbard Mashauri hakuwa na mamlaka ya kutoa amri hiyo na kwamba ilikuwa haieleweki. Hivyo Jaji Mkasimongwa alimwachia jana kwa muda lakini akamtaka afike mahakamani saa 6:00 mchana, leo Mei 25, 2018. Babu Tale alitiwa mbaroni Jumanne Mei 22, 2010, kwa amri ya mahakama hiyo iliyotolewa na Naibu Msajili Mashauri Februari 16 na hati ya kuwakamata iliyotolewa
Read more

Zari Amkumbuka Ivan Katika Kumbukumbu Ya Kifo Chake....Leo Katimiza Mwaka Mmoja

Image
Zarinah Hassan maarufu kama Zari The Bosslady amezidi kumkumbuka aliyekuwa mume wake Ivan Semwanga aliyeaga dunia mwaka jana tarehe 25 mwezi wa tano. Ivan ametimiza mwaka mmoja Tangu alipofariki mwaka jana nchini Afrika ya Kusini kutokana na maradhi ya moyo. Zari alijaliwa kupata watoto watatu wa kiume na marehemu Ivan na walikuwa katika Mahusiano kwa miaka mingi sana. Zari alianza kumuenzi Marehemu Ivan tangu jana ambapo aliandika ujumbe huu Kwenye ukurasa wake wa Instagram:
Read more

Diamond Platnumz Apewa Gari Mpya na Uongozi wake wa Wasafi

Image
Msanii wa Bongo Fleva Nassib Abdul maarufu kama Diamond Platnumz amekabidhiwa ndinga mpya ya kifahari na uongozi wake wa WCB. Muimbaji huyo mapema leo alipost video fupi akionyesha gari hiyo ya kisasa aina ya Toyota Land Cruiser. “Management yangu imenipatia Toy hii ndogo kwa ajili ya mikutano yangu ya kampuni,” alindika Diamond kupitia Instagram
Read more