A new commercial bank christened Guaranty Trust Bank (Tanzania) Limited have been granted a license by central bank (BoT) to carry out banking business in Tanzania

According to BoT, the license was issued on December 28, last year brings the total number of commercial banks operating in the country to 38.

The head office of the new bank is located at Plot 4, Regent Estate, Bagamoyo Road in Dar es Salaam.

The opening of a new bank comes few days after BoT liquidated five banks for failure to meet the capital threshold of Tshs 2 billion violating the requirements of the Banking and Financial Institutions Act 2006 and its regulations.

The banks include Covenant bank for Women (Tanzania) Limited, Efatha Bank Limited, Njombe Community Bank Limited, Kagera Farmers’ Cooperative Bank Limited and Meru Community Bank Limited.

Other three banks including Kilimanjaro Cooperative Bank Limited, Tanzania Women’s Bank Plc and Tandahimba Community Bank Limited that were supposed to be liquidated but managed to come up with a satisfactory strategic plan on how they would be able to raise the required capital, they have been given another six months until June 2018 to raise the capital.