Details

  • Type: Business and industry issue, KPMG information
  • Date: 6/30/2015

Why Tanzania banks must focus on innovation 

Why Tanzania banks must focus on innovation
Download Now
PDF files require Adobe Reader to view

Why Tanzania banks must focus on innovation

 

In the 2015 budget speech by the Minister for Finance in the United Republic of Tanzania, there was no mention of banking sector measures to help growth and stability of the sector other than the exemption of income from the realization of bonds issued by the East African Development Bank. On the contrary, the Kenyan Cabinet Secretary for Finance did propose to increase the core capital of banks from the current KShs 1 billion (TZS 20bn) to KShs 5 billion (TZS 100bn) progressively by December 2018. The capital requirement for banks in Tanzania remain at TZS 15 billion. The measures by the Kenyan government are meant to promote financial stability within the banking sector in line with the global trends. Is Tanzania ready for such drastic measures? Tanzania has more than 50 banks regulated by Bank of Tanzania. Do we need so many banks in Tanzania?