Regulatory Alerts2015-01-01
Banking and Financial Institutions (Mortgage Finance) Regulations 2015
The Bank of Tanzania issued these regulations to establish comprehensive licensing, organizational, and prudential standards for housing finance companies operating in Tanzania Mainland and Zanzibar. The rules mandate a minimum core capital of Tanzanian shillings fifteen billion, enforce strict prudential limits on loan-to-value and debt servicing ratios, and require board approval for insider mortgages capped at ten percent of core capital. Licensed entities must maintain robust risk management systems, classify mortgages using quantitative and qualitative criteria, submit regular reports to the Bank, and face sanctions for non-compliance.
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