The Ministry of Finance has asked members of the public with accounts in Crane Bank not to panic.
This comes after the central bank took over management of Crane Bank due to a financial crisis that has left the lender without adequate capital.
According to the regulator, allowing Crane Bank’s activities to continue in the current form would be detrimental to the interests of its depositors.
State minister of finance in charge of Planning David Bahati says this was done to protect all deposits at the bank and is proof that the central bank is on top of its game.
In 2015, an on spot check at the Crane Bank revealed that there were potential risks to its capitalization.
The Central Bank has now recalled former executive director Edward Kitimbo Mugwanya from retirement and assigned him to manage Crane Bank on behalf of the governor.