2 °c
London
Tuesday, April 20, 2021
No Result
View All Result
FurtherAsia FurtherArabia FurtherBrazil FurtherRussia
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Bank of Tanzania works on new community bank regulations

FurtherAfrica by FurtherAfrica
July 29, 2016
in Africa, Banking, Development, Economy, Finance, Tanzania, Trade
Reading Time: 2 mins read
0
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

The Bank of Tanzania (BoT) has said work is underway to develop a supervisory framework for community banks.

The current practice is that the central bank uses a “one-size-fits-all” when regulating commercial banks and community banks–leaving the latter group at a disadvantage side.

The BoT deliberations are on the IMF country report released Wednesday. The report, quoting the authorities, said: “Work is underway to develop a supervisory framework for community banks”.

A paper, “Reengineering the financial sector development strategy 2015” said it was improper to have a blanket set of regulations for all banks. The paper penned by Yetu Microfinance Bank Managing Director, Mr Altemius Millinga, suggested that community banks should have their own set of regulations.

“This approach is fundamental flawed,” he said.

“We recommend for a specific set of regulations which take into account the size, operational area and importance of the community banks.” The Managing Director said community banks are at a disadvantage as they are small and unable to survive under the current regulatory system. “Currently almost all the community banks are under stress and undercapitalised.

They shoulder increased regulatory burden because of the regulatory approach of “one-size-fits- all,” he said. The central bank had acknowledged that community banks are facing a number of myriad challenges arising from high running costs of IT, auditing and finance mobilization.

However, the main challenge that community banks face include finance mobilisation which is crucial in the first three to five years after the establishment of banks before pocketing the first profit.

The minimum regulatory requirement for community banks is 2bn/-, but to effective performance, the capital requirement should be at least 4.0bn/-, according to microfinance experts. Most of the CBs shareholders are savings, cooperative and credit societies and district councils – with limited financial muscles.

Source: AllAfrica

Related

Tags: Bank of Tanzaniabank regulationsBoTIMFLegislationMicrofinanceTanzaniaタンザニア坦桑尼亚
ScanSendShare320Tweet200Share56Pin72Send
Previous Post

Angola to spend $1.3bn on ports this year

Next Post

Zimbabwe imports fall 13.3%

FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Ethiopia’s Assela wind farm project enters construction
Renewables

Eastern and Southern Africa’s vast renewables potential offers route to sustainable growth

by Staff
April 20, 2021
Coronavirus

Ethiopian Airlines delivers COVID-19 vaccine to Brazil; over 20 million doses delivered worldwide

by Staff
April 20, 2021
Mozambique

Mozambique: Metical appreciated 35% this year, but earnings expected to reverse – Standard Bank

by FurtherAfrica
April 20, 2021
Wilderness Safaris opens the new DumaTau camp in Botswana
Tourism

Wilderness Safaris opens the new DumaTau camp in Botswana

by BOTSWANA UNPLUGGED
April 20, 2021
Zimbabwe secures US$98M for Brazilian irrigation equipment
Agriculture

South Africa: agribusiness in 2020 and what to expect in 2021

by Farmers Review Africa
April 20, 2021
Next Post

Zimbabwe imports fall 13.3%

Total Group expands network of service stations in Mozambique

Zimbabwe’s biggest supermarket chain doubles Q1 profit despite weaker sales

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

2021 AFSIC
2022 Indaba Mining

FurtherAfrica Partners

The Exchange Club of Mozambique Taarifa Rwanda
CrudeMix Africa TechGist Africa Farmers Review Africa
Botswana unplugged Financial Insights Zambia Africa Oil & Power
Harambee Africa Novafrica  

Subscribe to FurtherAfrica

Enter your email address to receive notifications of new articles on your email.

Join 73,051 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

© 2021 FurtherMarkets

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?