Liquidation of banks and financial institutions

Section 41 of the Banking and Financial Institution Act 2006 gives power to the Bank of Tanzania to appoint DIB as liquidator of failed banks and financial institutions. Since its establishment, the DIB has been appointed to liquidate nine banks; Greenland Bank (T) Ltd, Delphi’s Bank (T) Ltd, FBME Bank Ltd, Mbinga Community Bank PLC, Njombe Community Bank Ltd, Meru Community Bank Ltd, Covenant Bank for Women Ltd, Kagera Farmers’ Cooperative Bank and Efatha Bank Ltd. The DIB intends to participate in the preparation of the liquidation regulations with a view to provide clarity and thus facilitate smooth liquidation.

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