#Tanzania: Bank of Tanzania Dispels Islamic Bank Closure #Rumours

The Bank of Tanzania has come in motion in order to prevent a possible run on deposits at the sharia-compliant Amana Bank. This happend after reports went publich on social media of the financial institution's imminent closure.
Bank of Tanzania‘s Governor Florens Luoga stated that Amana Bank and other lenders were very stable and there was really no reason for panic over deposits. He confirmed that the bank is continueing with normal operations, and warned anyone speading false information about the future of some banks, including Amana. In these cases stern legal action would be taken. Additionally the Head of marketing and business Dassu Mussa said Amana Bank has sufficient liquidity. "All we can do is to make sure that our business is running efficiently and properly and we are very confident it is doing so."
The bank has seven branches in Dar es Salaam, Arusha and Mwanza. In May this year, the Bank of Tanzanie revoked the business licence of Mbinga Community Bank due to lack of capital, and placed it under compulsory liquidation. Mbinga, a microfinance institution had operations in Ruvuma in southern Tanzania. Its main customers were farmers. Similar measures were taken against FBME Bank in July, following a report from the US Treasury's Financial Crimes Enforcement Network (FinCEN) describing the bank as a "money laundering concern." The Tanzanian-registered bank mounted a legal challenge against the claims, but a US court ruled in favour of FinCEN in April, allowing it to shut the bank out of the American financial system.