Regulatory Alerts2023-01-01
Bank of Tanzania Guidance Note on Computation of Liquidity Coverage Ratio for Banks and Financial Institutions, 2023
The Bank of Tanzania mandates that all banks and financial institutions compute and report their Liquidity Coverage Ratio (LCR) monthly to ensure adequate unencumbered high-quality liquid assets cover net cash outflows over a 30-day stress period. The guidance establishes a minimum LCR of 100 percent, detailing specific asset classifications, cash flow drawdown rates, a 75 percent cap on inflows, and currency-specific asset maintenance. Institutions must submit their calculations electronically via Form 16-1 Schedule 16(vii) within seven days following each reference month.
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