RegAlert2023-01-20
Added · Updated
The Banking and Financial Institutions (Licensing) (Amendment) Regulations 2023
The Bank of Tanzania promulgated these amendment regulations to revise Regulation 40 governing the establishment of foreign branches and subsidiaries. The updated provision requires financial institutions to secure prior regulatory approval before expanding overseas, provided they satisfy solo and consolidated capital and liquidity thresholds. Additional approval conditions mandate a proven operational performance record, the capacity to inject supplementary capital as needed, and effective risk management for the new international entity.
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Banking and Financial Institutions (Licensing) (Amendment) GOVERNMENT NOTICE NO 13 published on 20/01/2023 THE BANKING AND FINANCIAL INSTITUTIONS ACT, (CAP. 342) ___________ REGULATIONS ___________ (Made under section 71) ___________ THE BANKING AND FINANCIAL INSTITUTIONS (LICENSING) (AMENDMENT) REGULATIONS, 2022 Citation GN. No.
- These Regulations may be cited as the Banking and
Financial Institutions (Licensing) (Amendment) Regulations, 2022 and shall be read as one with the Banking and Financial Institutions (Licensing) Regulations, 2014 hereinafter referred to as the “principal Regulations”. Deletion and substitution of regulation 40 - The principal Regulations are amended by deleting
regulation 40 and substituting for it the following:
“Establishment of foreign branch or subsidiary 40.-(1) A bank or financial institution shall not establish a foreign branch or subsidiary without obtaining prior approval of the Bank. (2) In considering the application for approval under subregulation (1), the Bank shall satisfy itself whether the bank or financial institution- (a) meets minimum capital and liquidity requirements on a solo and consolidated basis; (b) has a satisfactory performance record; (c) is able to inject additional capital as and when required; and (d) has the ability to manage risks arising from the established branch or subsidiary.” Dar es Salaam, FLORENS D.A.M. LUOGA 9thJanuary, 2023 Governor
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Source: Bank of Tanzania — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works