The Bank of Tanzania said May 16 that it authorized the merger of Twiga Bancorp Ltd. and TPB Bank PLC, effective May 17.

All customers, employees, assets and liabilities of Twiga Bancorp will be transferred to the new entity, which retains the name TPB Bank.

The merger will relieve the Tanzanian central bank of the management of Twiga Bancorp, which it put under statutory management with effect from Oct. 28, 2016, due to undercapitalization. The new TPB Bank will be adequately capitalized, the central bank said.