AfricaPress-Tanzania: BANK of Tanzania (BoT) has approved the formation of one of the largest microfinance lender following the merging of three banks.
The newly bank, Mwanga Hakika Microfinance Bank Limited, came after the merging of Mwanga Community, Hakika Microfinance and EFC Tanzania Microfinance.
The move, according to central bank, is expected to create a more consolidated bank in-terms of scale, efficiency and innovation.
The merging of the three banks followed the approval of BoT and the Fair Competition Commission (FCC) allowing them to form a better strong entity with total of 40.53bn/ – assets value.
“The bank is expected to experience comparatively better competitive advantage in the market,” a press statement issued to the media.
The merger was unveiled during the official ceremony that was graced by the BoT Deputy Governor, Financial Stability and Deepening, Dr Bernard Kibesse, witnessed by different stakeholders from banking sector with the theme ‘Merging for Better’.
Dr Kibesse commended the move taken by the three counterparts arguing that it will improve the financial sector by ensuring the under-banked communities have access to affordable banking services as well as access to loans for SMEs thus offering a more inclusive economy in Tanzania.
“Banking sector is the key player in fostering national development as it contributes in job creation through employment as well as business development through affordable loans. “We believe that this new entity will effectively consolidate this important sector for a more inclusive economy,” said Dr Kibesse.
Speaking during the ceremony, the first Mwanga Hakika Bank Board Chairman, Eng Ridhuan Mringo argued that the merger aims at offering cost effective and technology driven solutions to its customers.
“We believe that it is the time for consolidation in the banking sector and this has been witnessed by some of the past events that smaller banks have opted to merge with other banks and formed stronger and larger banks.
