Regulatory Alerts2023-01-01
Guidance Note on Computation of Net Stable Funding Ratio for Banks and Financial Institutions, 2023
The Bank of Tanzania mandates that all banks and financial institutions compute their Net Stable Funding Ratio (NSFR) to maintain a minimum 100% ratio, ensuring stable funding covers liquidity risks over a one-year horizon. The guidance establishes precise Available Stable Funding (ASF) and Required Stable Funding (RSF) calculation methodologies, assigning specific weighting factors to liabilities and assets based on maturity, counterparty type, and encumbrance status. Institutions must submit their calculated NSFR electronically on a monthly basis within seven days following each reference month to ensure continuous regulatory compliance and systemic liquidity stability.
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