Panic as Tanzania closes five banks

The Bank of Tanzania. Non-performing financial institutions risk losing their licences. PHOTO | FILE

Five Tanzanian community banks were last week closed over undercapitalisation, while three others remain in the crosshairs of the central bank.

The Bank of Tanzania (BoT) on Wednesday announced it had revoked the business licences of the five lenders that failed to raise Tsh2 billion ($891,180) capital, and placed them under the Deposit Insurance Board as a liquidator.