Conversion Factor for Operational Risk Capital Charge Computation

BENKI KUU YA TANZANIA
2 MIRAMBO STREET
11884 DAR ES SALAAM TANZANIA
Simu ya Mdomo: +255-22 2234494/5/7
+255-22-2235531
Anuani ya Simu: “BENKUU”
Kumbukumbu
Ref. No.
BANK OF TANZANIA
2 MIRAMBO STREET
11884 DAR ES SALAAM
TANZANIA
Phone: +255-22-2234494/5/7
Direct Line: +255-22-2235531
Fax No: +255-22-2234189
CABLE: “BENKUU”
FA.42/53/01/8 28th March 2019
The Executive Director,
Tanzania Bankers Association Limited, 4th Floor, Sukari House, Ohio/Sokoine Drive, P. O. BOX 70925 DAR ES SALAAM RE: CONVERSION FACTOR FOR OPERATIONAL RISK CAPITAL CHARGE COMPUTATION This has reference to our letter number FA.42/53/01/7 dated 26th February 2019, regarding captioned subject. In the said letter, Bank of Tanzania exceptionally granted relief to use conversion factor of 8.33 when converting capital charge for market and operational risks to notional risk weighted assets. However, the letter did not indicate the effective date for using the revised conversion factor. In that regard, the Bank wishes to clarify that the effective date for using the revised conversion factor of 8.33 is 31st December 2018. Please be informed accordingly. Yours faithfully, BANK OF TANZANIA DIRECTORATE OF FINANCIAL SECTOR SUPERVISION Cc: All Banks and Financial Institutions