The Bank of Tanzania (BoT) has revoked the banking license of Mbinga community Bank after its determination that the bank is critically undercapitalized, reports said on Friday.

This is the second bank this week, after FMBE bank was also revoked following determination that was involved in money laundering.

According to the banks statement, BoT has decided to take possession of the bank and discontinue its operations as well as place it under compulsory liquidation.

In view of this BoT has appointed the Deposit Insurance Board (DIB) as the liquidator effective today.

The measure was taken upon determination by BoT that the bank is critically undercapitalized and insolvent hence violating the requirements of the banking and financial institution act of 2006 and its regulations.

Continuation of the banks operations in its current capital and liquidity condition is detrimental to the interest of its depositors and poses risk to the stability of the financial system.

Source: Journal du Cameroun