Regulatory Alerts2023-01-01
Internal Liquidity Adequacy Assessment Process (ILAAP) Guidelines for Banks and Financial Institutions, 2023
The Bank of Tanzania mandates all licensed banks and financial institutions to implement a comprehensive Internal Liquidity Adequacy Assessment Process (ILAAP) that systematically identifies, measures, and monitors liquidity and funding risks across defined time horizons and stress scenarios. The framework requires active board oversight, robust intraday payment management, diversified funding access, and rigorous stress testing to maintain sufficient High Quality Liquid Assets buffers and operational contingency plans. Effective April 2025 on both solo and consolidated bases, institutions must align their liquidity strategies with board-approved risk appetites, submit regular supervisory reports, and conduct periodic internal audits to ensure continuous regulatory compliance.