Regulatory Alerts2023-01-01
The Banking and Financial Institutions (Liquidity Management) Regulations 2023
Issued by the Bank of Tanzania, these regulations mandate all licensed banks and financial institutions to implement comprehensive liquidity management policies and maintain specific quantitative ratios. Institutions must hold unencumbered high-quality liquid assets covering at least 100 percent of net cash outflows and maintain available stable funding equal to required stable funding, with phased compliance moratoriums extending up to 54 months. The rules require board-approved contingency plans, regular liquidity reporting, solo and consolidated compliance assessments, and empower the Bank to impose financial penalties or license suspensions for non-compliance.
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