Regulatory Alerts2023-01-01
The Banking and Financial Institutions (Capital Adequacy) Regulations 2023
The Bank of Tanzania issued these regulations to establish comprehensive capital adequacy standards for all banks and financial institutions, mandating minimum tier 1 capital levels tailored to institutional types. Institutions must maintain capital adequacy ratios of at least 8.5 percent for common equity tier 1, 10 percent for tier 1 capital, and 12 percent for total capital against risk-weighted assets, alongside a mandatory 2.5 percent conservation buffer and a minimum 7 percent leverage ratio. Existing entities receive an eighteen-month compliance moratorium, while undercapitalized institutions face targeted sanctions including dividend restrictions, operational suspensions, and potential licence revocation.
Share