Dar banks face post-IPO liquidity crunch

Traders at the Dar es Salaam Stock Exchange. The liquidity problem in banks echoes a similar situation last year when the government withdrew its deposits from commercial banks. Photo/LEONARD MAGOMBA

By WILFRED EDWIN
Tanzania’s financial markets are going through an acute liquidity crunch caused by the massive oversubscription of the recent initial public offers by the National Microfinance Bank (NMB) and the Dar es Salaam Community Bank.

All the money paid in by investors who applied for the shares is in the hands of the few receiving banks pending the allotment.More...


[SOURCE: The EastAfrican]