Regulatory Alerts2015-05-04
Revised Statutory Minimum Reserves Circular
The Bank of Tanzania has increased the statutory minimum reserve rate on private deposit liabilities from 8 percent to 10 percent, mandating all mainland and Zanzibar banks to hold calculated reserves against total deposit liabilities and public borrowings. Institutions must compute requirements by combining 10 percent for non-government deposits with 40 percent for central government holdings, maintain the daily balance in a Bank of Tanzania account, and file weekly compliance reports. Effective May 29, 2015, the circular repeals prior directives and enforces daily fixed or yield-based penalties for reporting failures, reserve shortfalls, or data misrepresentations.
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