Tanzania's central bank transfers assets of local lender China Commercial Bank

DAR ES SALAAM: Tanzania's central bank said on Thursday it had transferred all assets and liabilities of Dar es Salaam-based China Commercial Bank Limited to another lender after it was placed under administration in November.

China Commercial Bank (CCB) was put under 90 days administration by the central Bank of Tanzania (BoT) after the central bank said CCB had failed to meet capital adequacy requirements.

The central bank said in a statement on Thursday that the process of finding a resolution for CCB has been completed, and that the regulator had decided to transfer CCB's assets and liabilities to NMB Bank Plc, one of the country's largest lenders.

"Depositors and other creditors of China Commercial Bank Limited will be advised in due course how and when they will commence accessing banking services through NMB Bank Plc," BoT said.

The statement did not disclose whether any money had changed hands in the deal.

While placing the bank under administration in November BoT had said allowing CCB to continue operating while undercapitalised would pose systemic risk to the stability of the country's financial system.

The central bank's rules require 15 billion shillings ($6.48 million) as the minimum core capital requirement for a commercial bank to operate.

BoT has in previous years closed small banks with capital adequacy issues. The central bank shut another small bank in 2017 over capital adequacy concerns, and warned other banks against a rise in non-performing loans (NPLs).