Regulatory Alerts2026-05-20
Banking and Financial Institutions (Credit Guarantee Corporation) Regulations, 2026
The Bank of Tanzania issued these regulations to establish a comprehensive licensing and operational framework for the Credit Guarantee Corporation. The rules mandate a minimum capital of fifty billion Tanzanian shillings, cap single borrower exposure at twenty-five percent, and require the Corporation to maintain a leverage ratio not exceeding five times its shareholders' funds while covering up to eighty percent of credit facilities. Furthermore, the regulations enforce strict corporate governance standards, including Board composition requirements, mandatory committee formation, robust risk management protocols, and clear director liabilities to ensure sound financial practices.
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