Tanzania banking system reforms on track

Tanzania is currently reforming its Deposit Insurance System with the view of developing a separate governing law.

This will, among other things, entail having an operationally independent deposit insurance institution with extended mandate.

Bank of Tanzania deputy governor Lila Mkila said currently the Deposit Insurance Board of Tanzania (DIB) operates as a “Pay Box” under the BoT.

In a press statement circulated yesterday, Mr Mkila who is also chairman of the Steering Committee for modernisation of DIB made the remarks as he was officially opening a final reporting workshop on 2012 Knowledge Sharing Programme (KSP).

The workshop was jointly organised by the Korea Deposit Insurance Corporation (KDIC) and the DIB that was held in Dar es Salaam at the weekend.

KDIC has been offering technical assistance to DIB in the process of modernisation with the view of making the system more effective in maintaining country’s finances.

Mr Mkila requested the Korean government to extend its technical assistance to DIB.

The other tasks to be handed by the resident advisor would be in capacity building and others.

“The sharing of specific experiences on the reform of Korean Deposit Insurance System, successes during the Asian and global financial crisis and current status of KDIC key activities is a very valuable investment for the future strength and sustainability of the Tanzania’s DIB,” he said.

In his welcoming remarks, DIB director Abraham Rasmini said Deposit Insurance was one of the mechanisms employed by governments to enhance public confidence in the banking systems and consequently maintain stability of the financial system.
Source: The Citizen, www.thecitizen.co.tz, reported by Ludger Kasumuni in Dar es Salaam

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