Regulatory Alerts2014-11-26
Statutory Minimum Reserves Against Deposits and Borrowings
The Bank of Tanzania mandates all domestic banks to maintain statutory minimum reserves, reducing the reserve requirement rate on private deposits and public borrowings from 10 percent to 8 percent. Banks must calculate these reserves based on two-week averages of local and foreign currency liabilities, maintain dedicated accounts at the central bank, and submit weekly compliance reports. The circular, effective December 29, 2014, establishes daily financial penalties for late reporting, reserve shortfalls, or misrepresentation to ensure strict adherence.
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