The Banking and Financial Institutions Regulation, 1997

The regulation presented in this document applies to all licensed banks and financial institutions in Tanzania.

The Act is divided into nine parts each of which details:

• Preliminary provisions;
• Broad criteria for licensing that shall allow the Bank of Tanzania to scrutinize applicants for determining their financial soundness, historical background, character and experience of shareholders, management, soundness of business strategies, plans and policies, capital adequacy and their likely contribution to the economic development of Tanzania;
• Application for license and the formalities to be completed before submitting this;
• Necessary conditions to be fulfilled after approval of a license, including:
  • Submission of institution's memorandum and articles of association;
  • Deposition of paid-up capital;
  • Fulfilment of external and internal audit requirements;
  • Submission of qualification of the board;
  • Bar on relationship with foreign banks without approval;
  • Promotion of shareholders' autonomy;
  • Need for prior approval of any management /technical assistance agreement or for establishing branch.
• The conditions under which the Bank of Tanzania may revoke license issued to a bank or financial institution;
• Defined criterion for organization, ownership and minimum capital;
• Minimum conditions for opening representative office, branches, agencies, additional offices or subsidiaries;
• Scope of authority for banks;
• Scope of authority of financial institutions.