Tanzania: Central Bank upgrades its Depositors Insurance System

Jan 31, 2013

The Bank of Tanzania (BoT) is currently undertaking reforms to upgrade the country's Depositors Insurance System (DIS), in a bid to enhance confidence in the banking sector following the global financial crisis.

The Bank of Tanzania (BoT) is currently undertaking reforms to upgrade the country's Depositors Insurance System (DIS), in a bid to enhance confidence in the banking sector following the global financial crisis.

The aim of the DIS is to protect small depositors from losses of their deposits resulting from a failed banking institution.

As part of the system upgrade, the amount of protected deposit was raised from Sh500,000 (€230) up to Sh1.5 million.
The BOT is also considering setting up an operationally independent deposit insurance institution with an extended mandate.

Deputy Governor of the Bank of Tanzania (BoT) Lila Mkila said that the Korea Deposit Insurance Corporation (KDIC) is currently providing technical assistance, Tanzania Daily News reports.

Mr Mkila asked the KDIC and the Korean government to extend this assistance to the ICT sector and help the BOT identify the appropriate financial and operational software.

Tanzania Postal Bank's CEO Sabasaba Moshingi told the Daily News this upgrade "is welcomed with the aim of building depositors' confidence but with the ultimate goal of attracting more saving into the banks".ADNFCR-2976-ID-801532537-ADNFCR