President Magufuli warns underperforming banks . . .Pull your socks up or close
PRESIDENT John Magufuli yesterday said that the country needs few strong financial institutions to fuel economic development, rather than having several small banks that are underperforming. The Head of State was speaking during the official opening of CRDB Bank’s new Chato Branch in Geita Region. He said the country needs at least three large banks with strong financial muscles and wide network, instead of having too many small banks that fail to offer required services. “Small underperforming banks should find ways of merging with big ones ... since my government will not issue taxpayers’ money to bail out a failed bank,” Dr Magufuli said. He commended the Bank of Tanzania (BoT)’s recent move of revoking licences for five banks. “This should be normal practice for any failing bank, I commend BoT for that decision,” he said. He added, “Banking business is like any other venture. If a business goes wrong you close shop! Period.” He said that the country has more than 50 ban