Regulatory Alerts2023-01-01
The Banking and Financial Institutions (Prompt Corrective Actions) Regulations 2023
Issued by the Bank of Tanzania, these Regulations establish a tiered capital adequacy framework that mandates prompt corrective actions for banks and financial institutions experiencing financial weakness. Institutions must submit and implement capital restoration plans while facing escalating mandatory restrictions on dividends, connected-party transactions, bonuses, and branch expansion as their tier 1 capital falls below prescribed thresholds. The Bank retains discretionary powers to impose civil penalties, remove directors, appoint statutory managers or liquidators, and disqualify non-compliant personnel, thereby ensuring timely intervention and sustained sector confidence.
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