Regulatory Alerts2014-01-01
Banking and Financial Institutions (Credit Concentration and Other Exposure Limits) Regulations, 2014
The Bank of Tanzania issued these 2014 regulations to establish comprehensive credit concentration and exposure limits for all licensed banks and financial institutions. The rules cap single borrower exposures at five to twenty-five percent of core capital, set aggregate large exposure limits at eight hundred percent, and restrict interbank deposits to twenty-five percent. They further mandate board oversight, regulate insider transactions and equity investments, prescribe fixed asset investment caps, and outline specific sanctions for non-compliance while revoking the 2008 framework.
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