Most commercial banks have complied with
the central bank directive of increasing their minimum capital
requirement by 200 per cent to 15bn/-.
The three years deadline to raise the
capital from 5bn/- to 15bn/- ended in this year's first quarter, but by
end of March, 30 out of 34 banks complied.
The BoT Director of Banking Supervision,
Mr Agapiti Kobelo, told 'Daily News' that the remaining ones are under
special arrangement to assist them reach the target.
The Director added: "for the remaining
one (a few) we arrange a capital restoration plan to (assist) them meet
the requirements."
He said community banks, non-cheque
issuing, the deadline is still at 2017.
In total the country has some 55
banks. Through the letter of intent to IMF, the government said,
however, did not mention the names of the banks that failed to meet the
deadline.
Mr Kobelo said: "Some information is
restricted to the regulators" and not for public but assured the society
the banking sector is healthy.
Nevertheless, the letter said "the
banking sector remained vibrant with adequate liquidity and capital
above regulatory requirements," in the first half of this year. Asset
quality improved, as indicated by the ratio of nonperforming loans
(NPLs) to total loans.
The latter declined from 8.5 per cent in
September 2014 to 6.5 per cent in March 2015, reflecting write off as
well as efforts made by banking institutions to recover NPLs.
To cope with increasing innovations,
risks and new developments in the banking sector, BoT carried out a
review of the existing prudential regulations that were issued in 2008
and came up with revised as well as new prudential regulations in 2014.
New regulations were issued on
consolidated supervision, while revised regulations covered matters such
as capital adequacy, credit concentration, external auditors, internal
controls and internal audit, liquidity management, disclosures, and
prompt corrective action.
Source: Daily News, reported from Dar es Salaam, Tanzania
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