LogoRegulatory Alerts
2022-01-01

The Banking and Financial Institutions (Financial Leasing) Regulations, 2022

The Governor issued these regulations under the Banking and Financial Institutions Act to establish a licensing framework for bank-led financial leasing operations. The rules define eligibility criteria, streamline the license application process including fees and business plan submissions, and mandate standardized asset classification categories ranging from current to loss. Financial leasing entities must secure regulatory approval through this structured application process while maintaining compliance with the prescribed asset quality standards.

Bank of Tanzania logo

Tanzania

Bank of Tanzania

Click to view thumbnail

Banking and Financial Institutions (Financial Leasing) GN. NO. 575 (Contd.) 1 GOVERNMENT NOTICE No. 575 published on. 23/9/2022 THE BANKING AND FINANCIAL INSTITUTIONS ACT, (CAP. 342)

REGULATIONS _________ (Made under section 71) THE BANKING AND FINANCIAL INSTITUTIONS (FINANCIAL LEASING) REGULATIONS, 2022 ARRANGEMENT OF REGULATIONS PART I PRELIMINARY PROVISIONS

  1. Citation.
  2. Application.
  3. Interpretation.
  4. Financial leasing principles PART II ELIGIBILITY FOR FINANCIAL LEASING OPERATIONS
  5. Financial leasing by banks. PART III APPLICATION FOR A LICENCE
  6. Status of an applicant.
  7. Application.
  8. Application for license.
  9. Application fees.
  10. Submission of a business plan.
  11. Financing leasing policies.
  12. Documents.
  13. Legal opinion.
  14. Principal contact.
  15. Granting oflicens

Banking and Financial Institutions (Financial Leasing) GN. NO. 575 (Contd.) Asset current Substandard Doubtful Loss Classification is a lease asset in respect ofwhich, no default in payment of interest or repayment of principal has occurred, or payment thereof has not been past due for 3 months (90 days), and which does not carry more than normal risk attached to the business and does not disclose any problem. is a lease asset that: (i) displays well defined credit weaknesses that jeopardize the paymentofthe rentals; (ii) is not protected by the current (sound) net-worth and payment capacity ofthe lessee; (iii) terms regarding interest and/or principal have been re-negotiated/re-scheduled after commencement of operations; (iv) classified as non-performing for a period not exceeding 6 months. is a lease asset that: (i) has been a non-performing asset for 6 months (180 days) and more but less than 12 months, or (ii) exhibits all the weaknesses inherent in sub￾standard assets with the added characteristics that the credits are not well secured and the weaknesses make collection or liquidation ofthe debt in full improbable on the basis of currently existing facts. is a lease asset that: (i) has remained past due/non-performing for 12 months or more, or

Banking and Financial Institutions (Financial Leasing) GN. NO. 575 (Contd.) (ii) is considered uncollectible and ofsuch little value that its continuation as a recoverable advance is not warranted. Dar es Salaam, FLORENS D.A.M LUOGA, ........................2022 Governor

Share